If you do FX, you should know swap. I think there are many people who are wondering what is going on with XM’s swap points. If the swap point is a positive currency pair, it is possible to continue to earn a certain amount of profit just by holding a position, so I think many people are interested.
XM swap point
Swap points are adjusted gains and losses due to interest rate differences between currencies. In forex trading, investors buy and sell two currencies with different interest rates. So while you are entitled to receive interest on the currency you buy and hold, you must pay interest on the currency you sell.
Method of calculation
Consider a 1% JPY interest rate and a 3% USD interest rate and an investor holding a long position in the USD/JPY currency pair (buy USD and sell JPY). In this case, the investor receives 3% of the US dollar interest rate and pays 1% of the yen interest rate, so the amount equivalent to this difference (2% = 3% – 1%) is received as a swap point.
Conversely, if an investor holds a short position in the USD/JPY currency pair (selling USD and buying JPY), the interest received and paid will be reversed, so this difference (2%) You will pay the equivalent amount as swap points.
Timing of swap points
Swap points occur when you carry over your position to the next day or later. This carryover is called a rollover, and is usually done around the time the New York market closes (6:00 am Japan time in the case of US summer time).
XM trading swap points occur at the closing of the New York market.
XM has a swap calculator that can be used without opening an account. I will tell you the location.
In the Japanese version, select “Learn FX” → “FX Calculator”.
For the English version, select “Trading Tool” → “Forex Calculator”.
Select “Swap Calculator”.
How to use the swap calculator
The swap calculator can be calculated by entering the necessary inputs and pressing the “Calculate” button.
Only the base currency, currency pair, account type and number of lots are required. When the calculation is finished, the calculation result will appear in the place surrounded by the red frame.