Which currency are swap rates calculated in?

Swap rates are calculated in the currency of the underlying market. Therefore, swap rates for US indices such as the S&P 500 or Nasdaq 100 would be calculated in US dollars (USD), the FTSE 100 would be calculated in British pounds (GBP) and the DAX in euros (EUR).

For currency markets, swap rates would be charged in the base currency. Therefore, swap rates for EUR/USD would be in euros, GBP/USD in British pounds (GBP) or AUD/CAD in Australian dollars.

Are swaps a charge or a credit?

Swaps can either be a credit or a debit to your account. This means traders are sometimes paid to hold positions overnight (earn interest) or pay interest to hold the positions. Whilst market conditions effect the variable swap rate, the direction of the trade (long or short) decides whether it will be interest earned, or interest paid on open positions.


How to view swap rates within MT4:

There are two methods to access current swap rates within the MT4 terminal.