In the forex market, a swap is applied based on the difference in bank interest rates between two currencies for positions open more than one day.

There are various points and terms in the Forex market that traders absolutely must master. **Swap** is one of these terms.When traders make a transaction, there are terms such as SL, TP, etc., in the transaction details. And swap is one of these details **that is zero at the beginning. However, if the position is open for more than a day, its amount can change to positive or negative**. In the following, we will discuss the topic of swap.

In the forex market, for trades open for more than one day, a positive or negative swap is applied **based on the difference in bank interest rates between two countries or two currencies.** Suppose a trader has made a trade in the EURUSD currency pair, and the interest rates of the American and European central banks are different. A swap is applied if this transaction is open for more than a day.

Note that **swap is only related to positions open for more than one day**.In the forex market swap is applied at the end of trading at **5:00 pm US time**.

In other words: A swap will be applied if the trade does not close before 5 pm. Also, note **that a swap is applied to the trades every day.**This indicates a swap will be applied each day a transaction is open at 5 pm.

There are **different criteria in the swap calculation.**The main criterion and basis of the swap is the difference in the interest rate of the countries central banks. Due to the **decentralized forex network**, there are no specific institutions or set of regulations. Thus,** many brokers' rules may differ.**Therefore, the swap formula in brokers can be variable.However, generally, most brokers, including Trendo, use the following formula to determine the swap.Besides, brokers usually set the swap rate for each symbol's buy and sell in advance. Therefore, users don't need to calculate because they can know the swap rate through the broker.

As you can see, in the swap formula, **there are differences in the interest rates of the countries that are the basis of the formula**. The countries' interest rates may change many times during the year. However,** the year's first interest rate** is the basis for deciding the interest rate in the formula, and it will remain constant until the end of the year.

The second factor that affects the amount of swap is the** trading volume** of traders. So the larger the volume of the trade is, the more swap is applied.

The next factor in deciding the swap rate is the **fee of brokers**, which differs for different brokers. But **Trendo broker has the lowest cost for swap**. The other factors have much less effect on the swap rate and are practically ineffective.

As has been seen, in calculating the swap rate, **the difference between the base and quote exchange rates is important. This difference can be a positive or negative number according to the position of the currency and the type of trade (buy or sell)**. Therefore, we conclude **that the swap differs for different symbols.Also, the swap is different for the buy and sell of a symbol.**A symbol's buy swap is called a **"Swap long"** and the sell swap is called a **"Swap short."**

As mentioned, due to the decentralized forex network, brokers have different swaps with each other in symbols. Usually, brokers set the swap rate of each symbol's buy and sell in advance, and customers can read the swap rules of their broker. In Trendo Broker, **you can press and hold on a symbol to view its details, including the swap long and swap short.**

As you can see in the image above, the details of the USDJPY symbol are displayed. If your trade is open at the end of the trading day, for **the buy swap(Swap Long) per 1 lot volume, a $1.36 negative swap** will be applied to your trade.Users can also calculate swaps for other volumes.For example, for the volume of 0.01 lot swap, which is 0.01 cents for each day, that is a small amount.

Also,** the sell swap (Swap short) for this symbol, per 1 lot volume, is a $3.97 negative swap each day**. It can be calculated accordingly for smaller volumes, such as 0.01 lot, which is 0.03 cents for each day.

**Trendo broker has the lowest swap in symbols.**

**The swap on Wednesday is three times the usual rate**, so if you have an open position at the end of Wednesday, a triple swap rate will be applied to your trade. The reason is the three-day settlement of bank loan interest and spot settlement of the forex market, which is done all at once on Wednesday due to the weekend holiday (Saturday and Sunday). Note that there is no swap on Saturdays and Sundays due to holidays.

It is also important to note that in Trendo broker's cryptocurrency**, the swap on Wednesday is as usual and will not triple**.However, because the cryptocurrency market is not closed on Saturdays and Sundays, swaps will be applied to cryptocurrency trades.

Some of the laws and mechanisms of the forex market do not fully comply with Islamic laws. One of these laws is the difference in interest rates and swaps, which do not comply with Islamic laws. Therefore, **some brokers offer Islamic accounts to their Muslim customers, which are accounts without swaps.**

**Trendo Broker has Islamic accounts for its Muslim customers**, who can make their accounts Islamic through the support option. In Trendo, **the Islamic account does not differ from the main account in terms of commission and spread**, it is only because of the Islamic laws for **the currency pairs' swap and the zero gold.**