A Swap, also known as Rollover or Overnight fee, in forex refers to the interest that you either earn or pay for a trade that you keep open overnight.
Swap is counted in pips per lot. Its size may vary, depending on the asset you are trading.
When you trade a currency, you are borrowing one currency from us in order to buy another. In this case, the swap is calculated on the difference between the interest rates of the two currencies.
Swap is charged once per trading day at 24:00 server time, when you transfer your position. The exceptions are Wednesdays, when Forex trades are rolled over, and WTI and Brent crude oil, when the commission is charged 3 times in a row, and Fridays, when index trades are rolled over.
There is a different swap accrual method for each asset:
A client was 3 lots short position on the EURUSD on Monday Mar 8, 2021 and closed it the next day.
A client was 1 lot long on the WTIUSD on Monday Mar 15, 2021 and he closed the position on Wednesday Mar 17, 2021.
For clients who practice Islam and do not want to be charged swaps, Ventezo has the option of opening a swap-free account.
If you have such a need, you can send us a request to open such an account. However, Ventezo reserves the right to decide whether or not to open a swap-free account and to request documents from you to verify the need for such an account.
We may refuse to open a swap-free account or close such an account at our sole discretion, without explanation, justification or written notice.
If you trade in a swap-free account, you will not be charged a swap fee on prolonged trades. However, in the cases below, these conditions will not work:
You will also be charged a commission, even when working with an account without a swap, if the transaction is open longer than 10 days and if Ventezo has not closed it on its part. This commission may be charged at any time, from the time the trade is opened, without explanation, justification or written notice.
If you misuse a swap-free account and use it for manipulation, fraud, chargeback arbitrage and other illegal activities, Ventezo reserves the right at any time.