Dubai PR Network, Online Press Release from Dubai and Middle East
Filter PR by
OctaFX goes swap-free: here's how it will affect traders

OctaFX decided to remove swaps—fees traders pay for leaving their orders open overnight. Here's how it will affect the broker's clients.

KUALA LUMPUR, MALAYSIA - Media OutReach - 21 June 2022 - The global broker OctaFX recently announced that it went swap-free in all countries where it operates. Now traders don't have to pay this type of fee if they leave their orders open overnight. But why did they pay it in the first place? Let's explore swap fees and why brokers charge them.


Forex trading usually implies using leverage to open larger positions which could generate more profit. Since using leverage is a way of borrowing money from a broker, traders have to pay interest when their orders are open longer than one day. Swap is a way to charge it.

Swap fees depend on the interest rate differential between the currencies in a pair, called the swap rate. Swaps are calculated based on whether the order is short or long and are usually charged at midnight. On Wednesday night, traders have to pay weekend swaps triple the usual size. They mostly use an intraday strategy to avoid paying swaps, which significantly narrows their investment experience.

A swap fee can sometimes—though quite rarely—be paid to a trader. How? The answer is in the swap rate, which sometimes can be positive, provided that the interest rate of one currency is negative.

The formula for calculating the fee is as follows:

Swap = (lots * long or short points * point size)

Let's calculate the swap for one of the most popular currency pairs, EURUSD. If a trader opens a long EURUSD order of 10,000 units and closes it the next day, the swap would be:

(0.1 * –5.616 * 1) = –0.56 USD

Charged every day, swap fees tend to accumulate with time and make trading less profitable. To enhance investment opportunities for its clients, OctaFX decided to remove swaps. These fees will no longer stop traders from using mid-term and long-term strategies in the financial market. They can now hold as many orders as they want for as long as they want and not be charged any swap fees.

About OctaFX

is a global broker providing online trading services worldwide since 2011. It offers everything one needs to reach their investment goals, providing top-notch conditions utilised already by 7.5 million clients globally.

The company is involved in a comprehensive network of charity and humanitarian initiatives, including improvement of educational infrastructure, short-notice relief projects, and supporting local communities and small to medium enterprises.

On a side note, OctaFX has also won more than 45 awards since its foundation, including the 2021 'Best Forex Broker Asia' award from Global Banking & Finance Review and the 2021 'Best ECN Broker' award by World Finance.

#OctaFX

The issuer is solely responsible for the content of this announcement.

OctaFX

Posted by : Media Outreach, Jenny
Viewed 0 times
PR Category : Others
Posted on : Wednesday, June 22, 2022  11:00:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Media OutReach

Related Stories

 
 
Most Viewed Press Release posted in the last 7 days
Danube Home Signs Franchise Partnership with Hyvec Group to Enter Mauritius Market [6457-Views]
Samsung Launches the Neo QLED 8K TV across Qatar, Kuwait, Oman and Bahrain [4547-Views]
Ahood Alenezi Is Announced as the Face of Djula [4502-Views]
Introducing fisio: Your Partnerin Recovery [3760-Views]
Learn, Laugh and Play at Modesh World This Summer [3731-Views]
How Sony is Transforming the Art and Technology of Listening [3124-Views]
Fromage Friday at Le Gourmet in Galeries Lafayette [3124-Views]
Chalo BurJuman Mall, Chalo Maldives [3104-Views]
Nucleus Research Positions Infor as a Leader in its 2022 Enterprise ERP and SMB ERP Techno... [2890-Views]
GCC Hospitality Industry to Witness Steady Growth after Sharp Post Pandemic Recovery, says... [2829-Views]
Jaguar Land Rover Prepares for Advanced Electrified and Connected Future with New Testing ... [2784-Views]
Al-Futtaim Automotive Reveals Strong H1 Results, Reflecting Continuing Rebound for Automot... [2685-Views]
Etihad Airways Announces Double Daily Flights to Manila [2661-Views]
Panasonic's New High-Performance Blender is Perfect for Making Your Summer Refreshingly He... [2640-Views]
June Air Cargo: Stable and Resilient [2624-Views]
Juan Ayuso Commits his Future to UAE Team Emirates until 2028 [2604-Views]
Amlak Finance Announces H1 2022 Financial Results [2575-Views]
Dubai Customs Discusses Furthering Trade Cooperation with South Korea [2562-Views]
LG Announces Second-Quarter 2022 Financial Results' [2542-Views]
Etihad Airways Scales Up its Cargo Operations with Airbus New Generation A350F Freighter [2485-Views]
Keep Cool and Immerse yourself in Knowledge and Literature at Dubai's Libraries this Summe... [2485-Views]
DAE announces Financial Results for the Six Months ended June 30, 2022 Profit before Excep... [2476-Views]
Extra 10 Warranty Program: Maserati Launches the New 10-Year Warranty Program [2452-Views]
Introducing Samsung Galaxy Z Flip4 and Galaxy Z Fold4: The Most Versatile Devices, Changi... [2448-Views]
St. George's University Relaunches SGU Familiarization Program in Grenada with Visits from... [2444-Views]
 
RSS Facebook Twitter LinkedDin DubaiPRNetwork.com on Instagram
 
Top Sections
 
Top Stories