Due to the fact that each currency transaction involves borrowing one currency to purchase another, interest rollover fees are a part of foreign exchange transactions.
Borrowed currency pays interest, while purchased currency earns interest. The overnight interest rate may be positive or negative and applies to any time you open a position for trading.
If the interest rate of the currency you purchase is higher than the currency you borrow, the net interest margin will be positive and you will earn funds as a result. On the contrary, if the interest rate difference is negative, you will be charged a fee.
Swaps are also applicable to non foreign exchange instruments, as all instruments are traded in a specific currency that generates interest rates.
On the platform, 'overnight interest' will automatically be converted into balance currency. This operation occurs at midnight server time (UK time in the evening 10 Point) will only be charged if you have any open positions at this time/reap profit.
Overnight interest is charged once from Friday to Monday. Swaps are charged at three times the weekend rate from Friday to Monday.
FxPro The swap interest rate is consistent with the bank and reviewed and updated weekly by the executing department.