What's the swap rate?
The Swap rates, more over known as overnight rate or rollover rates, are debits or credits, either earned or paid for holding a position overnight. CHDM settles overnight positions at 23:00 CET using market accepted, interbank swap rates.
Where do these rates generate from?
Mainly there are large institutions which deal in FX put out swap rates on daily bases – and there willing prices for that day to exchange there currencies. Different Level of banks put there different swap rates mainly based upon their own risk-management analysis and on the activities based on the market. CHDM's swap rates are basically the interbank fee charged upon the positions held overnight and are uttered in USD/100'000 lot, with a different exchange rate for each currency pair.
Why interbank rates rather than benchmark rates?
Other brokers are reluctant to offer their overnight rates applying old method rate that applies benchmark rates which is based on interest-rate which differentials between central banks. CHDM believes to be transparence in all possible ways and in our method, which is more than the benchmark method which arrays itself with the market day to day. The interbank swap rate further takes into account recent liquidity, market dynamics and excitability on a given currency pair.
Synthetic rollovers for easy account statements
CHDM adjusts its rollovers in a synthetic manner - meaning positions are not opened and closed within overnight. Rather, a debit or a credit is applied to a trader's statement as a separate line item, for the ease and clarity of the trader to evaluate. For weekend rollovers account CHDM applies a triple swap on Wednesday evenings.
Please note: Rates applied will be visible on the CHDM website after 23:00 CET and updated after every end of day process.
