Transactions on the Forex market are made on Spot terms. It
means that all the deals are made with the actual delivery of the currency the
next workday after their execution. However, there is no need for the real
delivery of the currency in case of speculative trading (speculative trading is
actually something that you are about to start). If you execute order during
one workday, the delivery is canceled. It does not cause any problems. But what
if you have to leave your order open for more than one day?
The operation of the rollover of the position which is
called Swap has been created for this purpose. The basis of this operation is
that you need to "close" the order and reopen it at the close price.
At the same time, funds that are equal to the swap size are deducted from or
added to your account. The swap size depends on the interest rates of the
Central Banks and the range of other factors. Because the interest rate is set
by the Central Bank of each country, this leads to a situation wherein the difference
between the interest rates of various currencies may be quite considerable. The
calculation of the swap rate is carried out in the view of this difference.
Swap is calculated automatically in the end of every trading
day. For Wednesday to Thursday rollover, swap is deducted/added in a triple
size (for Wednesday, Saturday and Sunday). In the MetaTrader 4 trading platform
you can see all the current swap rates of every currency pair (to do this,
right click and choose "Symbols" in the "Market Watch".
Choose the currency pair you need in the appeared window and click the
"Properties" button. Swap rates of long and short positions are
displayed in pips).