FXOpen has announced that the broker has increased “Swap” for all “Crypto Instruments”(Crypto-Currencies) from 10% up to 18% per annual.
The change has been made in accordance with the increased recent volatility on the crypto currency market.
What is Swap on Crypo-currency?
Swap is a charge that is incurred by investors who move their positions to the next trading session.
Just like tradings of other financial instruments, there will be Swap “Charges” and “Credits” for tradings on Crypto-Currencies.
This time, FXOpen has increased the “Swap” for all Crypto Instruments from 10% to 18%.
How Swaps are calculated?
The swap is given in percent per annum.
Since swaps are calculated and charged every day at the end of the trading session, the calculated amount of the annual interest rate is divided by 360.
When charging swaps, first the cost of one symbol lot is calculated (the symbol of the opened position), and then the specified percent is calculated, the obtained amount is multiplied by the position volume (in lots) and the result is divided by 360.
Swap Charge/Credit are calculated with the following formula:
Swap = (One Point / Exchange Rate) * Trade Size (Lot Size) * Swap Value in Points
If the base currency of the symbol is different from the deposit currency, the swap is converted into the deposit currency.
The conversion is performed using the average price at the moment of swap charging: (Bid+Ask)/2.
*Overnight from Wednesday to Thursday a triple SWAP is charged.