i was reading about swap fees and settlements. I am getting confused.
let me put with an example.
Let’s say you open a trade at 9am on Wednesday and closed it at 4:59pm on Wednesday. There wont any swap fees correct? and also settlement of the trade will be on Friday (wednesday(today) + 2 business days (thursday+Friday)).
But if you open a trade on Wednesday 5:01 pm and closed it at 6pm Wednesday, there wont be any swap fee. does it mean the settlement will be the same on Friday(wednesday + 2business days (thursday+Friday)) OR it will be considered as thursday and settlement will be on Monday next week (thurday + 2 business days (friday+monday))?
Why I am confused is because if you open the trade at 3pm on wednesday and closed it at 5:01pm Wednesday same day, you are charged triple swap fee claiming you will be charged for weekends and settlement will be on Monday. but as above example, the trade which was open and closed between 5pm and 6pm will be settled on Friday.
Which one is true?
I am being confused so much. Am I wrong somewhere?
I am not with broker yet. I am learning. As I have entered to understand swap rates/rollover fees. triple rollover, settlement talks came up. so got confused trying to make my mind. just dont want to miss not to understand something while I am learning. However, It turned out to be not that difficult topic. Thank you for the reply, ponponwei