What is the swap fee charge?

When a trader enters a position in the Forex market, they are essentially borrowing one currency to buy another. If the position remains open overnight, the trader is essentially continuing to borrow the currency, which incurs an interest cost.

A rollover fee, also commonly referred to as a "swap" fee, is a charge imposed by financial institutions when a trader maintains an open position in the market overnight. This fee is typically associated with the holding of Leveraged positions in financial instruments such as currencies, commodities, or indices.

In the context of foreign exchange (Forex) trading, a rollover fee is levied to account for the interest rate differential between the two currencies involved in the trade. This differential arises due to the varying interest rates set by central banks for their respective currencies.

To compensate for this interest cost, Forex brokers charge a rollover fee. The amount of the fee depends on the interest rate differential between the two currencies and the size of the position held.

BTCC, a leading cryptocurrency exchange, offers a range of services to traders, including spot trading, futures trading, and wallet services. Spot trading allows traders to buy and sell cryptocurrencies at the current market price, while futures trading enables traders to speculate on the future price of cryptocurrencies.