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What is meaning of swap And how its work and also the role of swap?
What is meaning of swap And how its work and also the role of swap?
In Forex trading we have to SELL or BUY currencies.
The currencies are always traded in pairs like the EURUSD and the USDJPY.
Now each currency has an Interest Rate that may be Positive or Negative and when we carry a trader Owernight onto the next trading day then at that time these SWAPS are applied.
These are the Interest rates for carryover of the trade onto the next day and may be + or -
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What is meaning of swap And how its work and also the role of swap?