Overnight Positions

What is a swap rate?

Overnight or rollover rates, also known as "swap" rates, are debits or credits, either earned or paid for to hold and maintain a position overnight. ADVANCED-FOREX settles overnight positions at 23:00 CET using market accepted interbank swap rates.

Where do these rates come from?

Swap rates are broadcast daily by large institutions that deal in FX. These are prices that they are willing to exchange currencies at on a given day. Various tier 1 banks put out different swap rates based on their own risk-management analysis and on market activity. ADVANCED-FOREX's swap rates are essentially the interbank fee for positions held overnight and are expressed in USD/100'000 lot, with a separate rate for each currency pair.

Why interbank rates rather than benchmark rates?

Other brokers may continue to offer their overnight rates using an old method that applies benchmark rates based on interest-rate differentials between central banks. ADVANCED-FOREX believes in maximum transparency and our method, more so than the benchmark method aligns itself with the market daily. The interbank swap rate further takes into account recent liquidity, market dynamics and volatility on a given currency pair.

Synthetic rollovers for easy account statements

ADVANCED-FOREX settles its rollovers synthetically - meaning positions are not closed and reopened overnight. Instead, a debit/credit is applied to a trader's statement as a separate line item, making for clear and easy evaluation. ADVANCED-FOREX applies a triple swap Wednesday evenings to account for weekend rollovers.

Please note: Rates applied will be visible on the ADVANCED-FOREX website after 23:00 CET and updated after every end of day process.

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