Swap Rates for Currency Pairs
In IFC Markets the position rollover mechanism works on the basis of overnight interbank market rates reflecting current conditions of interbank overnight financing, that is with the most favorable conditions for the client. These rates are calculated daily by banking associations and may be available via news agencies.
The cost of rollover, or more precisely saying, its volume and sign, depends on the interest rate differential between the two currencies of the transaction. From client’s perspective, the higher the rate for the currency purchased and the lower the rate for the currency sold, the more beneficial the position rollover will be. Swap is credited to the client’s account in case the applicable interest rate of the currency purchased is higher than the applicable rate for the currency sold. Alternatively, Swap is deducted from the client’s account.Example of Swap Calculation for the Currency Pair AUDUSD
|AUDCAD||Australian dollar vs Canadian dollar||4.5||0.36 / -0.47|
|AUDCHF||Australian dollar vs Swiss franc||4.5||0.58 / -0.64|
|AUDJPY||Australian dollar vs Japanese yen||3.5||0.64 / -0.73|
|AUDNZD||Australian dollar vs New Zealand dollar||8||-0.03 / -0.11|
|AUDUSD||Australian dollar vs US dollar||2||0.46 / -0.68|
|CADCHF||Canadian dollar vs Swiss franc||4.5||0.23 / -0.31|
|CADJPY||Canadian dollar vs Japanese yen||3.5||0.24 / -0.33|
|CHFJPY||Swiss franc vs Japanese yen||4||-0.07 / -0.01|
|EURAUD||Euro vs Australian dollar||4||-1.14 / 0.80|
|EURCAD||Euro vs Canadian dollar||4.5||-0.49 / 0.35|
|EURCHF||Euro vs Swiss franc||5||-0.17 / -0.17|
|EURCZK||Euro vs Czech Koruna||210||-1.23 / -0.71|
|EURGBP||Euro vs British pound||5.4||-0.11 / 0.06|
|EURHKD||Euro vs Hong Kong Dollar||20||-0.26 / -0.47|
|EURJPY||Euro vs Japanese yen||2.5||-0.04 / -0.06|
|EURMXN||Euro vs Mexican Peso||50||-15.36 / 11.26|
|EURNZD||Euro vs New Zealand dollar||6.5||-1.23 / 1.04|
|EURPLN||Euro vs Polish Zloty||17||-3.03 / 2.54|
|EURRUB||Euro vs Russian Ruble||240||-83.14 / 50.28|
|EURSEK||Euro vs Swedish krona||40||-2.57 / 1.96|
|EURTRY||Euro vs Turkish Lira||9||-4.56 / 1.85|
|EURUSD||Euro vs US dollar||1.8||-0.05 / -0.05|
|EURZAR||Euro vs South African Rand||75||-19.26 / 17.97|
|GBPAUD||British pound vs Australian dollar||6||-1.18 / 1.04|
|GBPCAD||British pound vs Canadian dollar||6||-0.41 / 0.24|
|GBPCHF||British pound vs Swiss franc||6||0.14 / -0.25|
|GBPJPY||British pound vs Japanese yen||5.5||0.13 / -0.24|
|GBPNZD||British pound vs New Zealand dollar||15||-1.27 / 1.04|
|GBPSEK||British pound vs Swedish krona||65||-2.00 / 1.26|
|GBPUSD||British pound vs US dollar||2||0.11 / -0.22|
|NZDCAD||New Zealand dollar vs Canadian dollar||6||0.28 / -0.41|
|NZDCHF||New Zealand dollar vs Swiss franc||6||0.48 / -0.57|
|NZDJPY||New Zealand dollar vs Japanese yen||5.5||0.53 / -0.63|
|NZDUSD||New Zealand dollar vs US dollar||3||0.51 / -0.61|
|USDCAD||US dollar vs Canadian dollar||3||-0.36 / 0.25|
|USDCHF||US dollar vs Swiss franc||2||0.00 / -0.06|
|USDCZK||US dollar vs Czech Koruna||210||-0.90 / -0.52|
|USDDKK||US dollar vs Danish krone||12||-0.13 / -0.24|
|USDJPY||US dollar vs Japanese yen||1.8||-0.03 / -0.04|
|USDMXN||US dollar vs Mexican Peso||36||-11.23 / 8.23|
|USDNOK||US dollar vs Norwegian krone||40||-2.57 / 2.14|
|USDPLN||US dollar vs Polish Zloty||21||-2.21 / 1.86|
|USDRUB||US dollar vs Russian Ruble||150||-56.24 / 34.95|
|USDSEK||US dollar vs Swedish krona||40||-1.88 / 1.43|
|USDSGD||US dollar vs Singapore dollar||5||-0.05 / -0.04|
|USDTRY||US dollar vs Turkish Lira||6||-3.33 / 1.35|
|USDZAR||US dollar vs South African Rand||50||-14.02 / 11.64|
Spreads and swaps are specified in the calculation points (1 point here is equal to 0.0001, except the pairs including JPY, in which one point is equal to 0.01.)
Spread - Spreads may vary in case of large volumes of transactions and low liquidity market. Learn more about spreads.
Swap (Long/Short) - Operation of moving transaction to a new value date is called SWAP. This is an operation of closing an old position and simultaneous opening a new position on the same currency pair, of the same volume and at the same price, but on another value date. In this case, the Company charges or pays a compensation according to the direction and the currency of transaction. This payment (the cost of transition) is applied to the client's account as a credit or debit balance operation and depends on the difference in interest rates between currencies. For the calculation of SWAP, our company uses Libid and Libor interbank rates which reflect current real terms of borrowing, or equivalent regional interbank rates in case Libor is not available. The Company does not charge commission for SWAP operations, that is no additional percentage is added or subtracted from interest rates difference (except for the currency pair EURCHF).
SWAP calculation for Currency Trading:
Suppose that the current overnight Libor rate for the Australian dollar is 3.55%, while Libid is 3.425%. At the same time the rates for the US dollar are 0.15% and 0.025% respectively. Going long on AUDUSD an investor is buying the Australian currency and is selling an equal amount in US dollars. Therefore he is expected to receive 3.425% for buying the Aussie and pay 0.15% selling short or borrowing the US dollar. The calculation results in a SWAP of 0.96 points for a long position. On the contrary if a short position has been taken, the investor would have to pay 3.55% for borrowing the Australian dollar and would receive 0.025% for owning the US dollar. The difference between the rates would result in 1.03 swap points.
Attention: for the trading instrument EURCHF additional commission is included in SWAPs calculation due to the special exchange rate formation of the currency pair. Commission added to the market interest rate for long positions: 0.25%; for short positions: 0.125%.
SWAP is applied singly all week except for Wednesday to Thursday rollover when SWAP is applied trebly (for weekend days).
SWAP takes place every 24 hours at 00:00 server time, and it depends on the quote currency rate at the moment of SWAP calculation. For this reason, SWAP amount may differ from day to day.
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