{"id":166,"date":"2023-11-29T15:15:21","date_gmt":"2023-11-29T15:15:21","guid":{"rendered":"https:\/\/fintechbnp.com\/index.php\/calculating-swaps\/"},"modified":"2023-11-29T15:16:28","modified_gmt":"2023-11-29T15:16:28","slug":"calculating-swaps","status":"publish","type":"page","link":"https:\/\/handelspunkt.net\/en\/calculating-swaps\/","title":{"rendered":"Calculating Swaps"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"166\" class=\"elementor elementor-166\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-45cb652 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45cb652\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-16816dd\" data-id=\"16816dd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e7d2eb0 elementor-widget elementor-widget-heading\" data-id=\"e7d2eb0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">WHAT IS A SWAP<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e660576 elementor-widget elementor-widget-text-editor\" data-id=\"e660576\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>A foreign currency swap, commonly known as an FX swap, is an agreement between two foreign parties to exchange currencies. The agreement entails exchanging principal and interest payments on a loan in one currency for principal and interest payments on a loan in another currency of equal value.<\/p><p>When a trade is held open overnight, a swap rate is credited or debited as a rollover interest rate. When a position is rolled over, the swap rate is credited or debited once for each day of the week.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-885cdc1\" data-id=\"885cdc1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dc70e1c elementor-widget elementor-widget-image\" data-id=\"dc70e1c\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"460\" height=\"464\" src=\"https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image2.png\" class=\"attachment-large size-large wp-image-76\" alt=\"\" srcset=\"https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image2.png 460w, https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image2-297x300.png 297w, https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image2-150x150.png 150w\" sizes=\"(max-width: 460px) 100vw, 460px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8a6d6a0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8a6d6a0\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-e64c3ed\" data-id=\"e64c3ed\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-45aa727 elementor-widget elementor-widget-image\" data-id=\"45aa727\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"460\" height=\"464\" src=\"https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image1.png\" class=\"attachment-large size-large wp-image-75\" alt=\"\" srcset=\"https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image1.png 460w, https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image1-297x300.png 297w, https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image1-150x150.png 150w\" sizes=\"(max-width: 460px) 100vw, 460px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-298f40d\" data-id=\"298f40d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4f472b0 elementor-widget elementor-widget-heading\" data-id=\"4f472b0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">SWAP CALCULATION\n<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6df9326 elementor-widget elementor-widget-text-editor\" data-id=\"6df9326\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>On your open positions, you can determine the interest rate differential between the two currencies of the currency pair.<\/p><p>Choose your account\u2019s base currency, a currency pair, an account type, a trade size in lots, and leverage.<\/p><p>The following is how the calculation is done:<\/p><p>Swap = (One Point \/ Exchange Rate) * Trade Size (Lot Size) * Swap Value in Points<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b6efc42 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b6efc42\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-469018f\" data-id=\"469018f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9421d85 elementor-widget elementor-widget-heading\" data-id=\"9421d85\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">EXAMPLE<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b89897e elementor-widget elementor-widget-text-editor\" data-id=\"b89897e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>One Point: 0.00001<br \/>Account Base Currency: EUR<br \/>Currency Pair: EUR\/USD<br \/>Exchange Rate: 1.0895 (EUR\/USD)<br \/>Volume in Lots: 5 (One Standard Lot = 100,000 Units)<br \/>Short Swap Rate: 0.15<\/p><p>Swap Value = (0.00001 \/ 1.0895) * (500,000 * 0.15)<br \/>Swap Value is \u20ac0.69<\/p><p>*If the result is negative, you will lose money; if the result is positive, you will make money.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-top-column elementor-element elementor-element-0a43591\" data-id=\"0a43591\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6a4b936 elementor-widget elementor-widget-image\" data-id=\"6a4b936\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"460\" height=\"464\" src=\"https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image4.png\" class=\"attachment-large size-large wp-image-78\" alt=\"\" srcset=\"https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image4.png 460w, https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image4-297x300.png 297w, https:\/\/handelspunkt.net\/wp-content\/uploads\/2023\/08\/image4-150x150.png 150w\" sizes=\"(max-width: 460px) 100vw, 460px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>WHAT IS A SWAP A foreign currency swap, commonly known as an FX swap, is an agreement between two foreign parties to exchange currencies. The agreement entails exchanging principal and interest payments on a loan in one currency for principal and interest payments on a loan in another currency of equal value. When a trade [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-166","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/pages\/166","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/comments?post=166"}],"version-history":[{"count":1,"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/pages\/166\/revisions"}],"predecessor-version":[{"id":1803,"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/pages\/166\/revisions\/1803"}],"wp:attachment":[{"href":"https:\/\/handelspunkt.net\/en\/wp-json\/wp\/v2\/media?parent=166"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}