Swap Charges Query

Trading Discussion
1

I’ve been live trading for a number of months, and have been paying swap charges and receiving swap credits without fully understanding what they are - I have a GBP account but trade €/$. Would I avoid swap charges if I traded €/$ from a € account rather than GBP?

Thanks

2

Swap is figured by the difference in interest rates between the two currencies. I just googled EUR/GBP swaps and this is what I found. I’m not sure if it’s up to date.

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The swap is paid or charged for carrying positions into the following daily session.

As far as I know it doesn’t have anything to do with what currency is in your account.

3

Thanks for this, that’s really useful to know.

4

Hi. The Swap charges are as mentioned in the previous post. Irrespective of the currency in which your account is denominated. If you are using MT4 and want to calculate the Daily Swap Charges you can use a simple Custom Indicator or EA or Script.

That will tell you your Daily Swap given, direction of trade and lot size.

Do you use MT4 and do you know how to use Custom Indicators? If so I can write (free) a simple Indicator you can use to get the exact figures.

5

Thanks Ropunzel, that’s a generous offer. Unfortunately I don’t have MT4, I trade using a cAlgo platform, but it’s good idea and I just need to apply myself and find/modify/write something that would do the job because I typically have between 20-40 open positions at close of market each day.

6

Is that all currencies? That’s a lot of correlating pairs, what strategy are you running.

7

Just one currency pair, I run a form of hedging grid - four months since going live so early days, and a bit like Martingale in that there is the probabilistic inevitability of a wipe out at some stage.