Revenue
SWAP That Shapes Your Profitability
The Profit & Loss (P&L) functionality serves as a critical component for understanding the financial outcomes of your trading activities.
or
This is a crucial element for traders who keep positions open beyond the trading day, as it affects the overall profitability of their trades.
Vladimir Moshkov
Product Manager
SWAP Calculation
SWAP rates are expressed in points or in percentages and calculated based on the interest rate differentials, position size, and the specific trading instrument.
Multi SWAP
According trading calendar if the multiple SWAP can be deducted/earned this happens when the trading session does not start on the next day but in a few days.
Positive vs. Negative SWAP
Positive SWAP
When traders pay interest, effectively increasing the cost of holding positions open. Positive SWAP is deducted from the trader accounts according to the assets Margin Ratio.
Negative SWAP
When traders earn interest, effectively earning money from the position as the differential interest is credited to their account. Negative SWAP is always added to the trading account in the root asset type.
Earnings Potential
A negative SWAP results in a credit to the trader's account, indicating earned interest on the position held.
OPPORTUNITIES OF USAGE
Discover how SWAPs not only influence your trading costs but also open opportunities for extra earnings.
You can earn additional income from negative SWAPs by strategically holding positions in instruments where they receive interest.
Understanding SWAPs helps manage financing costs associated with trading strategies that involve holding positions overnight.
Encourages you to factor in SWAP rates when planning longer-term positions, possibly leading to increased returns.