Category Archives: Foreign Exchange Swap

Webinar by “AdrianWS” on “FX swaps and forwards – article contest” 22 April

A look at the recent article regarding FX forwards and swaps

To join our LIVE daily webinars, follow the link below and click “click to join”:

When you trade forex (fx), you need to be aware of rollover or swap charges/gains. Here we tell you about rollover costs and how they’re calculated.

Swap in forex trading market in urdu and hindi

Swap in forex trading market in urdu and hindi

Swap in forex trading market in urdu and hindi.

In this above we will discuss below topic…

1- What does Swap means
2- Central Bank Interest Rates
3- Swap Formulas
4- Other terms of Swap

1- What does Swap means
Get paid(or Pay) just holding a position. 5 pm (EST) all accounts are closed and reopened. Central Banks lend money to Banks at certain annual interest rate.
This interest rate is Discount rate. Each country has Different discount rate.

2- Central Bank Interest Rates
Rates at 08/02/2016.

1- ECB = 0.05%
2- AUD = 2.00%
3- NZD = 3.00%
4- CAD = 0.50%
5- GBP = 0.50%
6- USD = 0.50%
7- CHF = -0.75%
8- JPY = 0.10%

3- Swap Formulas (Buy and Sell Trade)
Swap for BUY Order.
Contract Size X(Base Currency Interest Rate –Quote Currency Interest Rate +Broker Mark Up) /100 / Days Per year

Swap For SELL Order.
Contract Size X(Quote Currency Interest Rate –Base Currency Interest Rate +Broker Mark Up) /100 / Days Per year

4- Other terms of Swap
Rollover = Swap
Carry = Swap

For my full beginner forex training course information in technical analysis and trading, go here:
you can also watch my video regarding what is pip, go here :

You must subscribe my channel for more informative forex training course

you can watch more professional forex training videos from here: go to

Video Rating: / 5

What are Swap Points – Accounting and Finance for Bankers (for JAIIB Examination)

Did you liked this video lecture? Then please check out the complete course related to this lecture, Forex Management – Detailed Study for CA / CS / CFA Exams with 30+ Lectures, 2+ hours content available at discounted price (only Rs.640)with life time validity and certificate of completion.
Welcome to the course International Finance – A Comprehensive Study.
In this course, you will learn about the International Finance and its related aspects covering
a) What are Forex Rates?
b) What is Bid / Ask / Swap / Spread?
c) How to compute Depreciation / Appreciation of Currencies?
d) Why Foreign Currency Rates Fluctuates?
e) What are Foreign Exchange Risks?
f) How to hedge Foreign Currency Transactions through Forward Contracts, Future Contracts and Option Contracts.
This course is structured keeping Professional course students in mind like CA / CPA / CFA / CMA / MBA Finance, etc.
This course will equip you for approaching those professional examinations. This course is presented in simple language with examples. This course has video lectures (with writings on Black / Green Board / Note book, etc). You would feel you are attending a real class.
This course is structured in self paced learning style. You would require good internet connection for interruption free learning process. You have to go through the videos leisurely to grab the concepts with clarity.
This course consolidates my other courses on Forex namely
• Forex Basics
• Forex Rates – Why it fluctuates?
• Learn Forex Risk: Understand Forex Decision Making
By taking this course, you need not take the above course.
Take this course to gain strong hold on International Finance.
What are the requirements?
• Students should have basic knowledge on Accounting and Financial Management
What am I going to get from this course?
• Over 37 lectures and 2.5 hours of content!
• Understand Basics of International Finance
• Understand Technical Terms used in Forex Transactions
• Understand Forex Risks
• Understand Forex Hedging Mechanism
• Understand International Capital Budgeting Methods
What is the target audience?
• This coursed is structured keeping Professional course students like CA / CPA /CMA / CFA / MBA (Finance) in mind.
Video Rating: / 5

What is Forex Currency Swap - Forex Trading Guide - What is Forex Swap ?

This is the most important thing to note on how to trade Forex for beginners.

The purpose of a currency swap is to allow sums of a specific currency to be designated in a different currency without the risk of loss that’s normally attached to exchanges.

Gain the Ultimate Winning Edge in Your Forex Trading-

Improve your trading skills with professional forex trading simulator

If you found this video valuable, give it a like.
If you know someone who needs to see it, share it.
Leave a comment below with your thoughts.
Add it to a playlist if you want to watch it later.

If you’re new to trading currencies on the foreign exchange market (forex), you might be wondering what a “currency swap” is. Well, the first step towards to dominating trading and turning a profit is to understand the mechanics, including currency swaps. To learn more about currency swaps and other financial instruments used in forex trading, keep reading.

Currency Swap: the Basics

When speaking in the context of forex trading, a currency swap occurs when two parties exchange currencies for a specified length of time, only to reverse the transaction later. The purpose of a currency swap is to allow sums of a specific currency to be designated in a different currency without the risk of loss that’s normally attached to exchanges. Large companies often use this technique to maintain and manage funds of varying currencies.

Note: currency swap is the most common type of forward instrument used on forex trading. Whether you’re a newcomer to forex trading or a seasoned investor, you’ll need to learn the nuances of currency swap to succeed.

Legs of Forex Swap

Swaps performed on forex have two “legs:” a spot transaction and forward transaction. When a swap occurs, these two legs are executed for the same currency amount, allowing them to offset themselves. Because forex trading occurs when two or more companies have a currency that the other party needs, it mitigates the risk associated with trading. An alternative to this trading technique is a forward-forward, in which both transactions are scheduled and agreed upon for forward dates.

Other Forex Financial Instruments

Of course, currency swap isn’t the only financial instrument used in forex trading. Others may include the following:

• Spot – 2-day transaction that’s opposite of future contracts. In addition to currency swaps, spot trading is one of the most common types of trading performed on forex.
• Forward – in a forward trade, money does not exchange between the parties until a future date has been agreed upon.
• Swap – see above.
• Futures – standardized forward contracts that are traded for this very purpose. Most future contracts have a 3-month length on average and are typically inclusive of interest.
• Option – last but not least, an option is when the owner has a right to exchange money as one currency into a different currency at an agreed rate on an agreed date.

Learn more about FOREX TRADING:

Please watch: “Forex Trading Success – 5 Tips to Become a Better Forex Trader”

Video Rating: / 5

NY Fed: FX Swaps With Foreign Central Banks Total $100 Million In Latest Week

NY Fed: FX swaps with foreign central banks total 0 million in latest week
NEW YORK (Reuters) – The Federal Reserve provided 0 million of liquidity to foreign central banks in the latest week via its swap lines for foreign central banks, the New York Fed said on Thursday.


Video Rating: / 5

Common Craft about The Foreign Exchange Market – Realized by Fabienne Deville (Assistant Professor in Finance) with the help of the NTE team, HEC-ULg – Voice by David Homburg

Foreign Exchange Forward Contracts Explained

A Forward Contract allows you to take advantage of current market prices, without having to pay all the funds now. With contracts available up to 1 year, and open periods up to 180 days, one of our dedicated Foreign Currency Exchange Specialists will work with you to determine what the best strategy is for your needs. The contract rate is determined by the length of the contract, current spot rate and the interest rate conditions of the two countries (currencies). Many companies choose to lock in forward contracts to manage foreign currency exchange risk in the future.

Competing for business overseas? Forward contracts eliminate your exposure to volatile currency swings and provide you with security and peace of mind on your foreign payables and receivables. Buying a large piece of equipment in 6 months? Get into a forward contract today and know what your costs will be when it’s time to pay for the equipment.

For more information visit
Video Rating: / 5

FX Swap Regulation in Limbo - October 12th and Beyond | As the Oct. 12 deadline looms, our Numerix FX Derivatives expert sits down to discuss evolving regulation around FX Swaps. He breaks down reasons financial institutions are increasingly anxious about the new rules, despite some assurances from the Treasury Department that foreign exchange swaps would be exempt, as well as the logic for the potential FX Swap exemption and what these rules would mean going forward.
Video Rating: / 5