How Rollover Affects Your Account - List of Negative and Positive Swap Rates

This article presents a comprehensive list of swap rates according to positive and negative rates. The essence is to let traders get a good knowledge of currency pairs that attracts extra profits or additional loss in terms of interest when a position is left open to the next day.

In simple terms Forex Rollover or otherwise known as swaps is the interest paid to you or paid by you for holding a position overnight. Each world currency has an interest rate connected to it. So this means that when a position is left open till the next day, it attracts interests irrespective of when it was opened. This should not be an issue for short-term traders and scalpers, but for long term traders it is definitely an issue.

Effects of Negative Swap Rate - Rollover

Effects of Positive Swap Rate - Rollover
Apparently most traders do not bother about rollover policies when choosing a broker because they do not know the effects of rollover (swaps) until they find themselves in such situation. In the illustration above we can see an account with open positions running for more than 4 to 6 days. On the right column (swap) we can see the effects of the positions overnight. The swap values (interest) has been added to the profits. For instance in the GBPCHF position with 10 lots the actual profit should have been $19,103.93 but a negative accumulated swap value of -$386.04 was added to it. If the trader knew about the swap rates for the GBPCHF pair he probably would have avoided holding on to the position overnight or taken a better decision to reduce extra loss while hoping for a price rebound. In the other illustration we can see the positive effect of leaving the EURCAD position overnight. The trader gained extra $25.54 added to the profit.

Rollover (Swap) Rates
See below a detailed swap rate list for currency pairs. The list is derived from HotForex Broker. The values might not be the same for other brokers.

Long (BUY)- Negative Swap Rates (Interest Paid By The Trader) click to expand/collapse

Short (SELL)- Positive Swap Rates (Interest Paid To The Trader) click to expand/collapse

Short (SELL)- Negative Swap Rates (Interest Paid By The Trader) click to expand/collapse

Swaps are valued in pips/lots, and may be adjusted daily based on market conditions, and rates provided by Liquidity Providers applicable to all open positions. Some brokers double or triple their swaps on certain day(s) of the week. For example HotForex applies Triple Swaps on Wednesday of each week.

So when choosing a broker consider their swap rate. Wish you a successful trading.

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Image "Money Exchange Between Dollar And Euro" courtesy of tungphoto /