Interest Rate Differential

Each currency has an associated interest rate set by its respective central bank. The difference between these interest rates forms the basis of the swap calculation.

Long and Short Position

In Forex trading, a trader can either go long (buy) or go short (sell) a currency pair. When a trader holds a long position, they are effectively buying the base currency and selling the quote currency. Conversely, a short position involves selling the base currency and buying the quote currency.

Swap Calculation

Swaps are calculated and applied at the end of each trading day, usually around 5:00 PM Eastern Standard Time (EST). The swap calculation considers the size of the position (lot size) and the current interest rate differential between the two currencies.

Open a Live Account

Start Trading in 3 Steps

Risk Warning: Trading Foreign Exchange (Forex) and Contracts for Difference (‘CFDs’) are complex financial products that are traded on margin. Forex and CFDs carry a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all of your invested capital. You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved taking into account your investment objectives and level of experience. Seek independent advice, if necessary.

Risk Disclosure: By using wetradeeu.com you agree to use cookies to enhance your experience.

Restricted Regions: WeTrade does not provide services for residents of certain regions, such as the United States of America, Belgium, France, Israel, Iran, Syria, Afghanistan, Myanmar, North Korea, Somalia, Yemen, Iraq, Sudan, South Sudan, British Columbia, Ontario and Manito.

wetradeeu.com is owned and operated by WeTrade INTERNATIONAL CY LTD, a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), under the License No. 453/25. Registered in the Republic of Cyprus under number HE406773. Registered & Head Office Address: Agias Fylaxeos & Zinonos Rossidi 2, 2nd Floor, 3082, LimassolCyprus.

Download WeTrade App

Download for

iOS

Download for

Android
Copyright @ WeTrade2024
Risk warning:CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs.You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.