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What is the Swap - Definition | Forex Dictionary

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Full Trader
(@fulltrader)
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Joined: 2 year aug
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The swap is the interest charged or paid for keeping a position open overnight. It depends on the interest rate difference between the two currencies of the pair and is applied at the end of the session.

Why it matters: in long term trades the swap can add or subtract a significant part of the result. Some traders take advantage of it with carry trade strategies.



   
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