{"id":3411,"date":"2020-04-07T13:58:32","date_gmt":"2020-04-07T10:58:32","guid":{"rendered":"https:\/\/roboforex.com/blog\/?p=3411"},"modified":"2024-03-15T18:30:26","modified_gmt":"2024-03-15T15:30:26","slug":"swaps-on-forex-examples-of-use","status":"publish","type":"post","link":"https:\/\/roboforex.com/blog\/blog\/2020\/04\/07\/swaps-on-forex-examples-of-use\/","title":{"rendered":"Explaining the Meaning of a Swap on Forex: Examples of Use"},"content":{"rendered":"\n

In this article, we will discuss the use of swap on Forex<\/a>. Swaps can influence the dynamics of currency pairs significantly and form long-term trends on the market.<\/p>\n\n\n\n

<\/span>What is a swap and how it works?<\/span><\/h2>\n\n\n\n

A swap<\/strong> on Forex<\/a> is an operation of money depositing or withdrawal for moving an open position to the next day. On Forex, a marginal system of trading is used, which allows using loaned money in the form of large leverage<\/a>. Thus, when a position is moved to the next day, the rules of interbank crediting come into force.<\/p>\n\n\n\n

Swaps on Forex directly depend on the interest rates of Central banks for each currency. In might be said that the currency in the pair that is bought is deposited while the currency that is sold is loaned. The bigger the difference between the rates of the currencies in the pair - the bigger the swap. Depending on whether we are buying or selling a currency pair<\/a>, a swap will be deposited on or withdrawn from our account:<\/p>\n\n\n\n