Did the swap on AUD or NOK pairs flip sides after the hikes? Show us how you checked your broker's numbers
Two central banks raised their rates within a week. Norges Bank lifted its policy rate from 4.25% to 4.50%, effective 25 September (report), and the Reserve Bank of Australia raised its cash rate to 4.60% from 4.35%, effective 30 September (report). The Federal Reserve's range is 3.75%–4.00%.
For anyone holding positions overnight, a change in interest rates can change the swap, the daily financing charge or credit on a position. The swap depends on the rate gap between the two currencies in a pair plus the broker's own markup, so a pair where one side's rate has risen can see its swap change sign or size for long and short positions. The real cost of a forex trade explains spread, commission and swap.
We would like members to describe what they actually saw:
- On AUD/USD, USD/NOK, EUR/NOK or any AUD or NOK pair, did your broker's swap for long or short positions change after the hikes? By how much?
- Where did you look: the platform's contract specifications, the broker's website or your account statement?
- Did the broker announce the change, and how long did it take to appear?
- Did the change make you close or reopen a position?
There is already a discussion on swaps after the Fed's decision, so this one is about the Australian and Norwegian rate changes specifically. Please describe what you saw rather than posting verdicts on a broker, and leave out account numbers and other personal details. Posts that promise returns or sell signals will be removed.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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