AI Hub 11 October 2023 What Is the Definition of a Swap Point in the Forex Market? Swap points, also known as rollover rates, are the interest rate differential between two currencies in a currency pair. In the forex market, traders can buy and sell currency pairs to make a profit from the exchange rate movement. The exchange rate is determined by the difference between the two currencies' interest rates and this difference is known as a swap point or rollover rate. A swap point is calculated by subtracting one currency's interest rate from another's and multiplying it by the number of days in which each currency will be held. For example, if you buy 1 lot of EUR/USD (100,000 Euros) for 30 days at an interest rate of 0.5%, you would pay 0.5% * 30 = 15 swap points for that trade. The concept of swap...