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Fundamental Analysis

Swap

The interest paid or earned for holding a position overnight.

Full Definition

Swap (or rollover) is the interest differential paid or earned when holding a forex position overnight past the daily cutoff (5 PM EST). If you buy a currency with a higher interest rate than the one you sell, you earn positive swap. Negative swap means you pay interest. Triple swaps apply on Wednesdays to account for the weekend.

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