What İs The Forex Swap

Category: Forex
Keywords: forex, forex swap, fx
Add Date: 11.12.2017
Video Description: Swap means “to change, to swap” in dictionary meaning.

In the Forex market, swap is the carrying cost of a negative or positive account move that affects invested assets.

Forex is the exchange rate between the currencies of two different countries in international markets where foreign exchange trading takes place.

The Forex swap is calculated on the basis of the opponent unit on the page you trade for the swap in long and short positions.

For example, if your account reflects EUR / USD on USD; USD / TRY is in TRY terms.

When the investor trades in foreign currency occurs money exchange.

The cost of swap is different for the purchase and sale positions.

Forex swap runs at 23.00 at Turkey’s time.

Swap payments are processed at night.

The swap cost is calculated on the basis of the official interest rates of the Central Banks of the countries.

Swap costs are applied for 3 days from 23:59 on Wednesday to Thursday.

Liquidity providers are closed on weekends and open positions in parties are valued for 2 days.

Terms Used in Forex Market

There are many forex terms, but some of the most common are as you see below.

Hedging: It is a process to protect against negative price movements that may occur in the future.

Basic Analysis: Forecasting the impact of financial and economic news on forex prices.

Parity: The value of the currency of an country corresponding to the currency of another country.

Liquidity: It is a readily convertible cash asset.

Arbitrage: It is the process of buying and selling precious papers such as money, precious metals, bonds, foreign exchange and stocks.

FED: Abbreviation of the US central bank (Federal Reserve Bank)

Valor: According to the agreement, fulfillment of obligations and closing of account.

Expiry: The end date of the transactions made.

Resistance level: The level rising of price forced to overcome.

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