Swap rates

[csloh]

SWAP RATES can affect us a lot when trades are not close out over long periods of time and if there are many open trades, it is very difficult to keep track if brokers manipulate the swap rates.

Recently, I was charged negative swaps for both long and short trades for the AUDNZD pair; can this be possible?

Also, I would like to ask if FPA or any members know an easy way to keep track of the SWAP RATES.

Hope someone can enlighten me. Thanks.

 

[RahmanSL]

Carry out a self check on your broker MT4 trading platform:

Right click on "Market watch"...click "symbols"...select "AUDNZD"....left click "Properties" and the current swap rates should pop-up.

Different brokers have different swaps and rates too.
For example, taking example from three of my brokers, the swaps for AUDNZD are as follows:

EXNESS: Swap long= -0.7 Swap short= -0.7 (both negative swaps)

IC Markets: Swap long= 0.1 Swap short= -2.9 (positive on long, negative on short)

Pellucid FX: Swap long= -2.17342 Swap short= -5.63341 (both negative swaps)


To compare swap rates among various brokers, Myfxbook has a "Forex Brokers Swaps" section at their site which is very useful for comparing swap rates among brokers.
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As a matter of interest, some forex traders use "Carry trades"....i.e entering either Long or Short position to get daily positive swaps for their trades....as their trading strategy. This is especially suitable for long term investment because interest is paid on the currencies pair 365 days a year and for as long as the position is left open.

The currencies pair traded are normally for "exotic currencies" (i.e those currencies that banks give daily interest rates on....e.g EURHUF, USDHUF, USDMXN etc2). These are considered "exotic currencies" because they are not normally traded by scalpers/day traders as, besides requiring more margin, also don't tend to move very much.

 

[Joh]

Absolutely be careful -there are many brokers IBFX for one - that charges swaps for buying and selling of ''many'' of the same curr. pairs.

Check it out because you are in charge of your money in your account -good luck.

 

[Pharaoh]

Brokers almost always pad the swaps in their favor. If a pair would really be almost swap neutral, that padding makes it negative both ways.

Some brokers pad more than others.

Don't fall in love with the concept of swap-free accounts. Brokers don't give away money for fun. Some charge storage fees that are larger than the highest negative swap you would pay. Others may let you rack up some nice profits and then could cancel your account because you "abused the system". No matter what, the broker will profit one way or another.