Swap is the interest adjustment applied to a position held overnight, reflecting the rate difference between the two currencies in the pair. Long positions can receive or pay it depending on which side carries the higher rate, so a positive swap is not free money. Swap is charged every night the position is open and usually tripled on one weekday to account for settlement value dates.
Forex glossary
Swap
Related term
Rollover
Rollover is the daily carrying forward of an open position to the next value date, and the swap adjustment is applied at that moment. It happens automatically a…
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