Forex, CFD(Metal, Index, Energy) Swap
In Forex trading, being aware of the swap rate is essential in money management, especially when carrying over the open position to the next trading day.
BigBoss SWAP points are calculated by a unique hybrid method based on the interbank market interest rates and cost of funds in cover deals.
◆BigBoss Swap Calculation Formula
BigBoss Swap Rate = Interbank Interest Rate + Cost of Funds
Some Forex brokers can keep the swap interest rates constant by remaining the customer's transaction in-house without sending it to the liquidity provider, which means, by doing that, the customer's loss becomes the profit of the company. It also means that you are conducting a bilateral transaction in which your profit is a loss to the company.
All the time, BigBoss strives to provide a fair trading environment in which we ensure our customers' orders flow to the interbank market and procure cover deal positions. However, the procurement cost may also change significantly if there is any huge bias in the total positions of any currency pair held by our customers.
The reason for the above mentioned is that there is always an extraordinarily expensive service charge taken by the liquidity providers on accepting overwhelming positions.
* For the current position deviation, please refer to the Open Position.
Due to the abovementioned, BigBoss strives to reduce the costs by providing positive and more attractive swap rates to those customers with fewer leaning positions, and to provide a trading environment with a wide range of options.
● Example USDJPY (rate = 105.00)
Interbank Interest Rate
Long: ▲0.05% / Short: 0.03%
Long: +0.08% / Short: ▲0.08%
Positions at BigBoss (Long)
▲ 0.05 % + 0.08 % = 0.03 %→ 105 x 0.0003 = + 3.1 pt
Positions at other FX brokers (Long)
▲ 0.05 % → 105 x (▲ 0.0005) = ▲ 5.3 pt
Time of Swap Points Reflection
Coordinates with the inter-bank market transaction, swap points reflect at the inter-bank market session closed time*.
* The session closed time is as follows.
・ Summer time: 21:00 (GMT +0)
・ Winter time: 22:00 (GMT +0)
Swap points do not renew on weekends, and the weekend swap points will be reflected at the end of the session on Wednesday.
* For instance
- For Monday's position, daily amount swap points would be reflected at the end of the session (Monday 21:00 or 22:00 GMT +0).
- For Friday's position, daily amount swap points would be reflected at the end of the session (Friday 21:00 or 22:00 GMT +0).
- For Wednesday's position, three-day amount swap points would be reflected at the end of the session (Wednesday 21:00 or 22:00 GMT +0).
Cryptocurrency CFD Swap
Cryptocurrency CFD adopts a rolling fee method that reflects the cost to balance the gaps between ask and bid in every 8 hours three times a day due to the tradable hours available for 24 hours a day, 365 days a year, including Saturdays and Sundays.
The time when the cryptocurrency CFD swap rates update is as follows:
Three times a day
* Cryptocurrency CFD swap will be reflected on your account on Saturdays and Sundays, instead of 3 -day swaps including the weekend’s reflecting at the end of the session on Wednesday.