Mark660 Walker

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What are swap fees in forex and why do they matter?

Swap fees, or rollover rates, are interest paid or earned for holding positions overnight. They reflect the interest rate differential between currencies. Institutions use swaps strategically in carry trades, while retail traders often overlook them. Benefits: swaps can generate steady income in favorable trades. Risks: negative swaps erode profits, especially for long-term positions. Checking swap rates is essential before holding trades overnight. Swaps illustrate how forex blends trading with global interest rate dynamics—profits and costs extend beyond pure price moves.