What is SWAP and why, for an opened position carrying over to the next day, do I either earn money or must pay it?
For an opened position carried over to the next day, money may be levied because prolongation of the position to the next day is processed with the help of a short roll-over or swap operation. Roll-over consists of 2 opposite deals of equal amounts but with different value dates (Tom – tomorrow, Spot – second working day) and slightly different rates. Roll-over is an artificial closing of an opened position on a certain value date and a synchronous opening of the same position on the next value date price, which shows the difference in interest rates between the selected currencies. Depending on the type of position (sell/buy) you either receive or pay a certain amount to prolong it (from some % of the pip to a couple of pips). When the position is prolonged from Wednesday to Thursday (here it means dates of valuation) this amount increases threefold.
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