What is Swap Rate?
The interest rate differential between the two currencies in a forex pair, applied to positions held overnight.
In-Depth Explanation
Practical Example
"A trader earns a positive swap by holding a long position in a high-yielding currency like the Mexican Peso."
Related Terminology
Rollover
The process of extending the settlement date of an open position to the next business day.
Carry Trade
A strategy that involves borrowing a currency with a low interest rate to buy a currency with a higher interest rate.
Interest Rate
The amount charged by a lender to a borrower for the use of assets.
Bull Market
A market condition where prices are rising or expected to rise.
Tradeable Instruments Affected
Tactical How-To Guides
How to Start Trading in the UK — Step by Step
Learn how to start trading in the UK. A complete step-by-step guide covering regulation, choosing a broker, and placing your first trade safely.
How to Day Trade — Step by Step
Master the art of day trading. Learn how to manage your time, choose instruments, and execute trades within a single day.
How to Keep a Trade Journal
Stop gambling and start trading. Learn the exact process for keeping a professional trading journal that identifies your edge.
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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