Swap is the difference that the broker calculates from the interest rate of the currency that we have left in the position overnight (overnight interest). The swap value for each broker is set differently. Some brokers don't mind. Most investors will see it as a small matter. Because when holding the position overnight, the result of the swap calculation from profit or loss is very small. but don't be complacent. If trading targets are achieved and there is no plan, close the order in time. Importantly, you should avoid holding sell orders until Wednesday night. Because of that, Swap values for Saturday - Sunday (+ public holidays) were brought together in advance on Wednesday night, making Wednesday the day with the highest swap value. If not necessary, it's best not to hold it overnight. But there are some other reasons to keep it as well, which are listed below.
Advantages of Swapping Relies on positive Swap orders left open overnight to profit from interest rates. The difference in interest rates on currencies where an overnight BUY position can be profited from is similar to interest on bank deposits. With the interest-plus-overlap model, hedging trading or carry trading focuses on currency pairs with high interest rates.
Disadvantages: Swap is charged when holding positions overnight. If we get, = pay less, But if we lose, = collect a lot. Some brokers calculate the Swap value, which is definitely not clear.
What do you think about swapping? The Swap value will occur from opening orders for more than 24 hours (overnight) based on the start time of 5 p.m. in New York City. The market opens at the same time that the Forex market around the world opens at 4:00 a.m. on Monday and closes at 4:00 a.m. on Saturday morning, according to Thai time. By using the front currency as the basis of comparison, If you open an order, you will get or have to pay for swap. Remember simply that If taking money with a lower interest rate To buy money with a higher interest rate = always get a swap (order to buy). if taking money with a higher interest rate To sell for money with a lower interest rate = always pay swaps (order sell).