Trading glossary · markets

swap

A small fee or payment for keeping a borrowed-money currency trade open overnight.

The fuller meaning

The overnight financing charge or credit on a leveraged forex position, reflecting the interest-rate difference between the two currencies. It is one of the financing costs, with crypto funding payments, that add up for positions held overnight.

swap.

Related words

24/7 market · after-hours · Asian session · ask · base currency · bid · bid-ask spread · Bitcoin · BSE · business income