What does the term swap means in Forex trading.

[George10 9932]

I'm a beginner in Forex trade and I'm looking for clarifications on what the term swap means in meta trader platforms sometimes it does show a negative number perhaps you have an idea about this you can bring in your contributions.

[Raqeebzy 6456]

8 hours ago, George10 said:

I'm a beginner in Forex trade and I'm looking for clarifications on what the term swap means in meta trader platforms sometimes it does show a negative number perhaps you have an idea about this you can bring in your contributions.

In Forex, it is either you short swap or long swap that's you open a long position for long swapping or short position for short swapping overnight. There is always a attached fee for any type of swapping you make.

[magd 5231]

It is not very complicated because the swap in Forex trading has the same general principle for crypto trading, but the currencies used in this swap differ and therefore you have to choose two currencies whose marketing value is large and follow the short-term swap method for currencies that fluctuate a lot.

[George10 9932]

15 hours ago, Raqeebzy said:

In Forex, it is either you short swap or long swap that's you open a long position for long swapping or short position for short swapping overnight. There is always a attached fee for any type of swapping you make.

I'm greatful for reaching me out with this information to clarify on my query, atleast now I have an idea but in this case I think short swaping can be great than long swaping because it can come with a high fee.

[Raqeebzy 6456]

59 minutes ago, George10 said:

I'm greatful for reaching me out with this information to clarify on my query, atleast now I have an idea but in this case I think short swaping can be great than long swaping because it can come with a high fee.

I believe that depends on what the outcome is, if it comes out positive or negative. Long swap might be a lot profitable than short swapping if it's positive (you make profit) but definitely it's a more risky and has a higher fee.

[Yomose 3704]

I do not know about for ex but in trading, swapping is the process of trading from one coin to another in which no third party will be involved. It is a smart contract that uses time lock contract to fulfill it order. 

[Amr90 1064]

The swap is the difference between the interest rate on the base currency and the quote currency in currency pairs.
And it occurs when the deal remains overnight, so it is sometimes positive and sometimes negative, depending on the currency pair being traded and according to the deal, buy or sell.

[Ameralsamt 2558]

Currency trading, i.e. trading foreign currencies specifically, is within what is known as the stock exchange, or an extended market in all countries of the world, and is known globally as the economic term "Forex", in which many participants exchanged currencies, such as international banks, as well as financial markets, and some individual traders, as well as some international institutions, which is the largest global financial market.

[maarcoferrer 1096]

This in the Forex market as in the stock market has to do with the position you open and spend the days, this refers to the Swap, the more you have in the account the higher the Swap, this as both the broker is very convenient at the time you leave an open position, the same is not so high the price of the commission but if it is very convenient to the broker.