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Rollover changes that are a bit weird?

Hi,

some days ago you paid 9 points on a long usdjpy position. I am not sure but I think it was only for a few days. Now al of a sudden 2 points is charged. The way it changes is rather bizar and weird. Will it stay like this? I like to do some carry trading as well and need steady swap for that.

I am sure Darwinex will be able to respond to you better than me, but for your knowledge, be aware that swap points have been really stressed because of year end.

Now that we are in a new year, they should be normal and you shouldn’t have those big changes.

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Hi Yofxtrader, thanks for answering and thinking about a possible reason. So far Darwinex did not answer me.

https://www.luckscout.com/forex-swap-rates-forex-rollover-rates/

Swap can be calculated by simply checking the difference in central bank interests. Add a small markup and there you have it: swap. The markup seems to be massive sometimes and right now unable to understand at all. No change in interest -> big change in swap makes no sense.

Hi @MrDarwinnn - I suggest you contact them directly by email info@darwinex.com I have personally found them to be very prompt and efficient at answering questions.

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Hi @MrDarwinnn,

Swap points are calculated taking into account interest rates difference, and basis.

Basis is just the liquidity preference in one currency against the other, and is subjective, not being possible to calculate it from a formula or anything know.

Let’s say “basis” is the part of swap points that differ from interest rates diferencials, and as I told you before, it is explained by liquidity preference in one currency against the other.

In EURUSD, because of year end and preference in funding in USD to match balances, swap points for overnight hit 22 basis points (0,0022), situation that became normal in jan 2017.

That’s why you have seen such big changes in swaps these days.

Regards,

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