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How to View Swap Rates

Posted on: 21 July 2014 , by: Pepperstone Support , category: MetaTrader 4

Swaps will determine the cost / payment for holding a position over the rollover period (at 0:00) chart time. This will vary from pair to pair and it is important clients are aware of these charges, and how to view swap rates.

Swap charges are released daily by the financial institutions we work with and are calculated based on risk-management analysis and market conditions. Swap rates posted are indicative rates and are subject to change based upon market volatility. Central bank interest rates play a role in determining this swap rate but it will ultimately rely on the funding rates released by the banks.

For how to view swap rates, please see the Pepperstone MT4 Trading Platform. To view the rates select:

> "View", then select "Market Watch"

> The Right Click on the Market Watch and select "Symbols"

How to View Swap Rates

> Then choose the currency pair you wish to check and select Properties.

How to View Swap Rates

The mechanics of earning or paying swaps is due to the fact that when you buy or sell a currency pair, you are short one currency and long the other I.E. you are buying one and selling the other. This means that you will be paying interest on on one, and receiving interest on another.

When countries interest rates are similar, it is possible to have negative swaps for both long and short trades on a currency pair. Whenever you are borrowing or depositing funds you will be paying a spread between what you can borrow at, and what you will be paid to deposit funds – this is the same as borrowing or depositing money with a bank, they will charge a spread for providing a service. When interest rates are very similar, this lending-borrowing spread can be greater than the difference between the interest rate you can receive on the higher interest rate currency and the lower interest rate currency, resulting in a double negative swap rate.