Forex swaps at 0 for both long and short, how is that possible ?

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I know some brokers who are settings the swaps on some symbols to 0/0. It doesn't make sense to me.

Has someone some experience, information or ideas about what that could mean ?

Example of some symbols swaps :

 

I asked our 'friend' ChatGPT Alain and this is what it answered, sounds logical to me.

Setting swaps to 0/0 typically means that there is no overnight interest charged or paid for holding positions overnight. This can happen for various reasons:

  1. Promotions or Special Offers: Brokers sometimes offer promotional deals where they waive overnight interest charges for a certain period or on specific symbols.

  2. Market Conditions: In some cases, during times of high volatility or when interest rates are very low, brokers might temporarily set swaps to 0/0 to attract more traders or to avoid complicating trades with negligible interest charges.

  3. Broker Policy: Some brokers may have a policy of not charging swaps on certain symbols or under certain conditions as part of their overall trading conditions.

  4. Regulatory Requirements: Depending on the jurisdiction and regulations, brokers may be required to disclose swap rates clearly. In some cases, they might opt for 0/0 swaps to simplify their offerings.

  5. Technical Error: It's also possible that it's a technical glitch or error in the trading platform, but this is less likely if it's a widespread occurrence.

However, it's essential to verify with the broker or their customer support to understand the specific reasons behind setting swaps to 0/0 for those symbols. It's crucial for traders to be fully informed about any conditions or changes in trading terms that may affect their positions and overall trading strategy.

 
Eleni Anna Branou #:

I asked our 'friend' ChatGPT Alain and this is what it answered, sounds logical to me.

Setting swaps to 0/0 typically means that there is no overnight interest charged or paid for holding positions overnight. This can happen for various reasons:

  1. Promotions or Special Offers: Brokers sometimes offer promotional deals where they waive overnight interest charges for a certain period or on specific symbols.

  2. Market Conditions: In some cases, during times of high volatility or when interest rates are very low, brokers might temporarily set swaps to 0/0 to attract more traders or to avoid complicating trades with negligible interest charges.

  3. Broker Policy: Some brokers may have a policy of not charging swaps on certain symbols or under certain conditions as part of their overall trading conditions.

  4. Regulatory Requirements: Depending on the jurisdiction and regulations, brokers may be required to disclose swap rates clearly. In some cases, they might opt for 0/0 swaps to simplify their offerings.

  5. Technical Error: It's also possible that it's a technical glitch or error in the trading platform, but this is less likely if it's a widespread occurrence.

However, it's essential to verify with the broker or their customer support to understand the specific reasons behind setting swaps to 0/0 for those symbols. It's crucial for traders to be fully informed about any conditions or changes in trading terms that may affect their positions and overall trading strategy.

For sure, I am also able to enumerate all the possibilities.

1. It's not the case.

2. JPY pairs have a high negative swaps for short on all symbols. It's similar on most brokers currently.

3. Ok maybe...still doesn't make sens if it applies to some symbols, and the worst of them (highly negative). We are trying to get answers from the brokers, but you know how it's easy.

4. If it was 0/0 on all symbols, ok. But here it's some of them only(the ones with JPY and/or GBP).

5. The swaps are from the broker's website.

Thanks EleniGPT.

 
Alain Verleyen #:


Thanks EleniGPT.

Ha ha, I think that asking the broker itself its the best way to find out Alain.

 
Eleni Anna Branou #:

Ha ha, I think that asking the broker itself its the best way to find out Alain.

Not sure about that, we will see.
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