INTEREST / SWAP Clause Samples

INTEREST / SWAP. An interest/swap rate is the overnight interest or rollover (earned or paid) for holding positions overnight in forex trading. Each trading instrument has its swap fee, which is calculated based on the volume used. The interest/swap rate is subject to change depending on fluctuations in the country's primary interest rate and is calculated daily at the close of the New York market. Additionally, there is an additional swap of three times the average amount, which occurs every Wednesday to compensate for the swap fees on Saturdays and Sundays when the market is closed.