For our Islamic customers, we have structured an account for any client to waive all swap charges/credits in their account. The exclusive Islamic Accounts (also known as ‘Swap-Free Accounts’) do not swap or rollover interest on overnight positions, which is against the Islamic faith.
A swap rate or ‘rollover fee’ is an interest fee that is charged when you keep a position open overnight. Each currency pair has its own swap rate calculated based on one standard lot (100,000 base units) and is determined by interbank rates.
SWAP FOR CURRENCY PAIRS WITH USD AS QUOTE CURRENCY
(COUNTER CURRENCY)
Swap Rate = Contract Size x Lots x Swap (points) x Minimum Fluctuation (points) x Days
SWAP FOR CURRENCY PAIRS WITH NON-USD AS QUOTE CURRENCY
(COUNTER CURRENCY)
Swap Rate = Contract Size x Lots x Swap (points) x Minimum Fluctuation (points) x Days x PIP Value at the closure of market
FOR 5 DECIMAL QUOTATION
Buy EUR/USD at -2.2pts (SWAP Points)
Sell at 0pts
If an investor opened 1 lot on Monday and closed the position on Thursday, then payable trading days for swap is 1+1+3=5
Swap is calculated as follows:
100,000 (Contract Size) x 1 (Lot) x -2.2pts (Swap Points) x 0.00001 (Minimum Fluctuation Points) x 5 days = -11
Swap Rate is $11
FOR 4 DECIMAL QUOTATION
Buy EUR/USD at -0.22pts (SWAP Points)
Sell at 0pts
If an investor opened 1 lot on Monday and closed the position on Thursday, then payable trading days for swap is 1+1+3=5
Swap is calculated as follows:
100,000 (Contract Size) x 1 (Lot) x -0.22pts (Swap Points) x 0.0001 (Minimum Fluctuation Points) x 5 days = -11
Swap Rate is $11
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