What is a swap rates?

Swap rates determine the cost / payment for holding a position overnight. This occurs at daily trading cut off times on any trades held to this point. A swap amount is determined based on the interest rates of the countries involved in each currency pair and whether your position is short or long. In any one currency pair position, the interest is paid on the currency sold and received on the currency bought. (This depends on current daily market interest rates thus it is not always applicable. )

In any currency pair:

  • A currency swap is the exchange of interest payments in one currency for the interest payments in the paired currency.
  • An interest rate swap is the exchange of a floating interest rate for a fixed rate.

  • Swaps rates offered by financial institutions are calculated on both a risk management analysis and market conditions. Each institution has its own currency exchange rate swaps, which measure the standard size as 1 lot (trading volume 1 standard lot).

    How do I view swap rates on the Ruizean Markets MT4 trading platform?

    To view the latest interest rate swaps, please visit the Ruizean Markets MT4 trading platform.

    To view the overnight rate, select: View> Market Watch. Right-click on the Market Watch, and select Currency Pair. Then select the currency you want to view, and then select the currency pair “Specification”.

    See our swap rates

    Access our real-time swap rates through the MT4 trading platform or send an email to cs@ruizeanmarkets.com