How can a swap value be positive, and a related question, where is the best place to start to understand the SWAP VALUE ?
Hi @mfranke60,
Swap AKA rollover interest accounts for the difference in interest rates between the two currencies in the pair your are trading. When you hold a position in a currency pair from one day to the next (5pm New York time is the cutoff between the end of one 24-hour trading and the start of the next in the global forex market), you earn interest on the currency you are long and pay interest on the currency you are short.
If you are long EUR/USD, then you are long euros and short US dollars. By contrast, if you are short EUR/USD, then you are short euros and long US dollars. Since the US dollar currently has a higher interest rate than the euro, you will pay rollover interest/swap if you are long EUR/USD, and you will earn rollover interest/swap if you are short EUR/USD.
We explained this in more detail in this earlier post: Can someone explain to me what rollover interest is?