Titan FX constantly reviews our swap rates and those of our competitors to ensure we are best in market.
All traders should be aware of swap rates on the instruments they are trading, especially traders who hold open positions beyond the end of the trading day. Several trading strategies such as ‘carry’ trading actually make use of rollover to profit from the interest rate difference between currencies.
- forex swap/rollover charges are determined by the overnight interest rate differential between the two currencies involved in the pair and whether the position is a buy ‘long’ or sell ‘short’
- index CFD swaps relates to the interest rate of the base currency of the associated index (eg. GBP for FTSE100)
- commodity CFD (energy and precious metals) swaps are a composite of different factors that relate to the holding cost of the commodity
Swap is payable on all Titan FX live accounts. It can introduce complexity to your trading strategy, especially if it involves holding positions for long periods of time.