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Similarly, the investor's account is debited if the long currency's interest rate is below the short currency's interest rate. These rates are stable in a typical market environment. However, they drastically swing on a daily basis if the interbank market witnesses stress forex signals free to increased credit risk. By now, we already know what Forex roll-over rates forex igm However, the Forex swap rates comparison sheds light on how they are different from swap rates.
The swap rate is the difference between the two currencies' interest rates, calculated forex signals free to if the position you are holding is long or short. Forex roll-over rates can be both beneficial and damaging.
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