What is Swap Trading & How Does It Work?
Swaps – or forex rollover charges – are interest payments that apply when you hold a forex or CFD position open overnight. In forex trading, swaps are based on the difference between the rates of the two currencies you trade.
You can earn or pay swaps depending on the direction of your trade and market conditions. If you hold a currency with a higher interest rate against one with a lower rate, you may profit. Conversely, if the currency you hold has a lower interest rate, you may incur a fee.