Thursday, April 24, 2014

Calculating Swap in Margin Value

So brokers do have their swap calculated in margin value.
Here is a few information you need to gather:

1. The swap long/ short charges. (in our example, we will take long EURUSD, which will be -1.154254)
MT4 Forex Symbols Properties

2. What is margin currency?
If it is EURUSD, it will be EUR. And currently, EUR may be around 1.38

So for a 1-day swap, it will be 1.38*-1.154254= -1.59287052
Remember, on Wednesday (which most broker charges 3 day swap). So it will be -1.59287052*3=-4.77861156.

This should be the swap you are getting in your MT4 account.

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