FXCE: FAQ | Understand why swap rates are high

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Understand why swap rates are high

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1 min read

01/11/2023

Changes in swap rates in forex trading can be explained by various factors.

Some fundamental reasons that contribute to changes in swap rates include:

Interest rate differentials.
Market volatility or lack of clear trends.
Economic and political events.
Trader sentiment.
Trading hours.

Note: If one side of the currency pair has a positive swap rate while the other has a negative swap rate, the net result may still be negative. This represents the cost of borrowing one currency to buy another. However, the extent of the negative swap rate also depends on various other factors.

Comment

FXCE LLC is a financial service company in Saint Vincent and the Grenadines under the Business Corporations Act, with registration number 357 LLC 2020.

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There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.

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