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Swap

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Description

In forex, the interest rate differential between the two currencies in a pair, paid or earned when a position is rolled over to the next trading day.

In forex trading, a swap is the interest rate differential between two currencies in a pair, applied when a position is held overnight. This can result in a payment or receipt of interest, depending on the direction of the trade and the interest rates of the involved currencies, affecting the cost of holding positions.

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