A swap rate refers to the overnight interest that is either added to or deducted from your position when it’s held open overnight. Swaps come in two forms: a swap long for buy positions and a swap short for sell positions. These rates are determined by the overnight interest rate differential between the two currencies in the pair and whether your position is a buy or sell.
It’s important to note that swaps are only applied when positions are maintained overnight until the next forex trading day. Each currency pair has its specific swap charge and swap rates provided as per central bank, calculated based on a standard size of 1.0 lots, equivalent to 100,000 base units.
On Wednesday nights, swaps for FX, Metals, Bonds, and CFDs on Commodities are subject to a triple rate compared to the usual rate. Similarly, on Friday nights, swaps for Energies, Indices, and also incur a triple rate compared to the standard rate.
Rollover occurs when a trader shifts their position from the expiring front-month contract to a contract with a later expiration date.
Traders decide when to make this transition by monitoring the trading volume of both the expiring and next-month contracts. They typically roll their positions when the volume reaches a specified level in the next-month contract.
During a rollover, a trader simultaneously closes their existing position and opens a new one in the next contract month. For example, if a trader holds a long position in S&P 500 CFDs contracts expiring in September, they would sell September ES contracts while simultaneously purchasing ES contracts expiring in December or a later month.
The commission represents the percentage of the contract value paid to the broker every time a transaction is executed.
Commission rates vary for each contract, but minimum commission charges still apply.
When trading Futures CFDs (contracts for difference) on our platform, a commission is applied to your account upon order execution.
