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Trading platforms Why swap rates tripled on positions held over the roll-over between WED and THU?
avatar Mymelody
Question by: Samanthar - 14 Nov 2016, 07:31:22
Why swap rates tripled on positions held over the roll-over between WED and THU?
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Answers (1)
avatar user 11439
Answer by: Joseph - 14 Nov 2016, 07:41:06

For positions that are open on Wednesday and held overnight to Thursday, the amount added or subtracted to an account as a result of rolling over a position (swap) is three times the usual amount. Charging or paying 'triple swaps' for Wednesday-to-Thursday 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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