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Forex: what is a Swap?
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The word “Swap”, which takes place in the forex market litarutür, literally translates to change or swap into England. This is the name given to the process of clearing the cash flows of any two assets with an equal default monetary value over a given period of time.
Swap is one of the most difficult terms to understand in the forex market literature. There are a limited number of people who have been in the Forex market for years who know exactly what the term means. According to the general logic of swaps, the value taken is given as debt and the value sold is debited. In a sense, the cost of transportation can be considered.

As a result, the numerical net difference between these two interests is taken into account every working day at 00:00 at night. In other words, the difference that is realized according to the overnight interest settlement is added to the position. Monday Friday Tuesday Thursday and Friday night Swap accounts will be created one day, while three-day swaps will be added to positions created on Wednesday but not closed at 00: 00 this time at night (closed on the other days). The fact that Wednesday is different is a special situation in the Forex market (value T+2 ). The swap is applied for 3 days after two days of clearing transactions on the end of the week.
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Forex: what is a Swap? - by admin - 09-09-2020, 01:16 PM

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