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General questions Why are FX swaps tripled on a Wednesday?
avatar Catkathyy
Question by: Jeremy - 07 Oct 2016, 09:19:35
Why are FX swaps tripled on a Wednesday?
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avatar user 11040
Answer by: Henry - 07 Oct 2016, 09:24:56

If you hold a position overnight on a Wednesday, the normal financing charges that are credited/debited on a daily basis are three time the normal amount. Charging 'triple swap' for Wednesday roll-over accounts for the settlement of trades through the weekend, as swap rates are not charged during this period due to the market being closed.

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