Business Daily Media

Men's Weekly

.

Octa seeks to clarify Forex swap and swap-free accounts

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 29 March 2024 - One of the most misunderstood terms in Forex trading is swap or Forex swap. To trade successfully, you should understand what Forex swap depends on and how it is calculated.

This material describes what a Forex swap is, explains its mechanics, and describes swap-free trading accounts.Forex swap.


Octa

Definition

Swap is a commission charged for carrying open positions overnight to the next trading day in the Forex market. The exact moment when the swap is withdrawn from your trading account depends on your broker. Most brokers charge it most often between 11 p.m. and 12 a.m. server time.

The Forex market is over-the-counter and non-deliverable, meaning you are not the owner of the trading asset. In order not to cause the need for calculations, the system automatically closes an open position on the current trading day and opens it on the next one. Such closing is considered conditional, as the position is carried over, and the swap is charged.

Depending on the value of the swap and the position, the swap can be negative or positive. In other words, you will either have to pay a commission or be paid a commission for holding an open position overnight. This is because the margin system used in Forex trading allows you to use the additional capital the broker provides. You borrow funds to open a position from your broker.

There is an opinion among traders that the Forex swap is nothing but a broker's commission. However, this is not true. Let's find out how swaps work in the Forex market.

How do swaps work in the Forex market?
Every time you open a position, you make two transactions: buying one and selling another currency in a currency pair. So, you are essentially borrowing that money to sell one of the currencies and need to pay interest on the borrowed amount. However, in doing so, the currency you buy will earn you interest.

If the base interest rate on the currency you buy is higher than the currency you sell, you can earn interest on the difference in rates for carrying an open position to the next day. However, given the broker's markup, regardless of the direction of the open position (buying or selling), you will have to pay a commission.

Thus, the value of a swap depends on the market and the instrument you are trading. For example, the swap on the same EURUSD and USDJPY positions will differ.

The value of swap varies depending on:

  • online broker
  • type of the position—Buy or Sell
  • type of the asset
  • number of days the position remains open
  • nominal value of the position (number of lots).
Why is there a triple swap?
Sometimes, a swap is charged for holding an open position over the weekend, even if you did not have it on Saturday and Sunday. Such a fee is called a triple swap. Since the markets are closed on weekends, the triple swap was invented to compensate for this and is charged either on Fridays or Wednesdays, depending on the specific market.

This is because orders are settled on the Forex market on the second working day from the trade date (T+2). Since the value date falls on a weekend, the transfer is made for three days at once (on Monday). Therefore, from Wednesday to Thursday (at 12 a.m.), the swap is charged for the past weekend and Wednesday.

In other words, if you hold your position overnight when the triple swap is applied, your order will be charged three times the standard swap.

Are there swap-free accounts?
To make trading more convenient and accessible, many brokers have introduced the concept of swap-free accounts.

Swap-free accounts relieve the trader from the need to constantly monitor the size of accounting rates on currencies in a currency pair, make trading more straightforward, and allow taking into account in advance the commission for the transfer of positions when calculating the financial result of planned transactions. It is also relevant for those clients who cannot use swaps due to religious beliefs. This determines the second name of this type of account—Islamic accounts.

Charged daily, the swap fee accumulates over time, making trading less favourable. To enhance the investment opportunities of its customers, Octa has decided to remove swap fees for all types of trading accounts. These fees will no longer prevent traders from using medium- and long-term strategies in the financial market. Now, they can keep that position open for as long as they see fit and with no swap cost.



The issuer is solely responsible for the content of this announcement.

Octa

is an international broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services already utilised by clients from 180 countries with more than 42 million trading accounts. Free educational webinars, articles, and analytical tools they provide help clients reach their investment goals.

The company is involved in a comprehensive network of charitable and humanitarian initiatives, including the improvement of educational infrastructure and short-notice relief projects supporting local communities.

Octa has also won over 70 awards since its foundation, including the 'Best Educational Broker 2023' award from Global Forex Awards and the 'Best Global Broker Asia 2022' award from International Business Magazine.

News from Asia

The 3rd Liangzhu Forum to Open in China’s Hangzhou to Highlight Harmonious Civilization Interplay

HANGZHOU, CHINA - Media OutReach Newswire - 16 October 2025 - From October 18 to 20, the 3rd Liangzhu Forum will be held in Hangzhou, capital city of east China's Zhejiang Province, when the profo...

Street Showdown. Seven Title-Contending Lineups Converge on Beijing for GT World Challenge Asia Season Finale

BEIJING, CHINA - Media OutReach Newswire - 16 October 2025 - This weekend, the 2025 Fanatec GT World Challenge Asia powered by AWS heads to Beijing for its season-ending showdown, where seven driv...

Kling AI Redefines Content Creation with AI-Powered Films at MIPCOM Cannes

CANNES, FRANCE - Media OutReach Newswire - 16 October 2025 - Kling AI, the AI-powered creative platform from Kuaishou Technology, made a compelling debut at MIPCOM Cannes, the premier gathering o...

OPPO Find X9 Series to Launch Globally, Set to Redefine Mobile Imaging

SHENZHEN, CHINA - Media OutReach Newswire - 16 October 2025 - OPPO, the world's leading smart device brand, today announced the global launch of its latest flagship Find X9 Series following the pr...

Primech Holdings Signs Strategic MOU with GAIB to Unlock First-of-its-kind ARaaS Revenue Models Through Tokenization

SINGAPORE - Media OutReach Newswire - 16 October 2025 - Primech Holdings Ltd. ("Primech" or the "Company"), a leader in AI-powered hygienic robotics, today announced the signing of a strategic Mem...

"Go Where Flavors of Hunan Abound": Hunan Cuisine Goes Abroad, Spreading Cultural New Chapters Through Food

BANGKOK, THAILAND - Media OutReach Newswire - 16 October 2025 - As the spicy aroma of Hunan cuisine wafts through the streets of Bangkok, a cross-border culinary dialogue quietly begins. Recently...

DL & Antalpha US$100M Gold, US$100M Bitcoin Plan

HONG KONG SAR - Media OutReach Newswire - 17 October 2025 - DL Holdings Group Limited (HKEX: 1709) today announced a comprehensive strategic partnership with Antalpha, a global leader in digital a...

Wildberries Launches Purchase on Credit in Kazakhstan

ASTANA, KAZAKHSTAN – Media OutReach Newswire – 17 October 2025 – Wildberries, a leading digital platform in Eurasia, has launched the option to pay for purchases on credit on its marketplace to cu...

XTransfer Shines at the 2025 APSARA Conference

Selected for "Alibaba Cloud Best Practices for Chinese Enterprises Going Global" SHANGHAI, CHINA - Media OutReach Newswire - 17 October 2025 - XTransfer, the World's Leading B2B Cross-Border Trad...

Nikken Sekkei to Exhibit and Present at "Japanese Culture in Architecture and Materials" in Ho Chi Minh City

Exploring the Art of Designing Spaces that Inspire Emotion HO CHI MINH CITY, VIETNAM - Media OutReach Newswire - 17 October 2025 - Nikken Sekkei will take part in "Japanese Culture in Architectur...

Brennan Bolsters Leadership to Accelerate Next Growth Chapter

In a move to further embed cybersecurity at the heart of its business strategy and deliver sovereign secure-by-design solutions for its customers, A...

How to Be Investable: Insights from Richelle Nicols, CEO of Pollinatr

Richelle Nicols is the CEO of Pollinatr, a pioneering investment and business development program designed to support and accelerate the growth of s...

What Can Australian SMEs Hope For in a Meeting Between Albanese and Trump?

For small and medium-sized enterprises (SMEs) in Australia, international politics might seem distant—but when leaders like Prime Minister Anthony...

Qantas to Serve Nan’s Davidson Plum Cookie

Lake Macquarie, NSW (Awabakal Country): From a single mother’s kitchen bench to supermarket shelves, Wiradjuri entrepreneur Terri-Ann “Tezzi” Dani...

Minns Labor Government shutting down the Business Connect program

The NSW Opposition is concerned that the Labor government will shut down a support program that has assisted New South Wales businesses. In a media ...

Samsara Eco appoints Dr. Lars Kissau as General Manager for Asia

Australian biotech innovator Samsara Eco has announced the appointment of Dr Lars Kissau as its first General Manager of Asia. Based in Singapore...