We use cookies that are necessary for this site to work. With your permission we would also use analytics and advertising cookies to understand how the site is used and to measure our advertising. Cookie Policy
A swap (also called an overnight fee or rollover fee) is the interest charged or credited for holding a position overnight. It reflects the interest rate differential between the two currencies in a forex pair. Swaps can be positive (you earn) or negative (you pay), depending on the direction of your trade and the prevailing interest rates. At GCC Brokers swap rates come from our liquidity providers, change daily, and can be negative on both sides (Client Agreement, clause 12.2). Any different swap arrangement is agreed with an individual client and is not an entitlement (clause 12.3).
You hold a long AUD/JPY position overnight. If the Australian interest rate is higher than the Japanese one, you may receive a swap credit, for example $1.80; if you were short AUD/JPY, you would pay a swap instead. The rate actually applied is the broker’s swap rate for that day, which can be lower than the interest rate differential or even negative on both sides.
