Mastering Swap Rate with Exness in the Philippines

What Swap Rates Actually Mean on Our Platform

Look, I’ll be straight with you – swap rates are one of those things that can catch new traders off guard if you don’t understand them properly. On our Exness platform, swap rates are basically the interest you either pay or receive when you hold a position overnight.

Here’s how it works in simple terms: when you’re trading currency pairs, you’re essentially borrowing one currency to buy another. If you hold that position past 5 PM EST (which is 6 AM Philippine time, by the way), you’ll either earn or pay interest based on the difference between the two currencies’ interest rates.

From what I’ve seen with Filipino traders on our platform, this timing can be a bit tricky to get used to at first. But honestly… once you understand the mechanics, it becomes pretty straightforward.

The thing is – and this is important – swap rates change daily based on market conditions. We update these rates on our platform every day, so you’ll always see the current rates when you’re planning your trades.

How We Calculate Swap Rates at Exness

Our swap rate calculation follows industry standards, but let me break it down in a way that actually makes sense. We use this formula:

Swap = (Contract Size × Swap Rate × Number of Lots) / 10

Now, I know that looks intimidating, but it’s really not that complicated once you see it in action. Let’s say you’re trading EUR/USD with a standard lot (100,000 units) and the swap rate is -2.5 pips for a long position.

• Contract size: 100,000
• Swap rate: -2.5 pips
• Number of lots: 1
• Result: (100,000 × -2.5 × 1) / 10 = -25 PHP (approximately)

Here’s a quick heads-up though: swap rates can vary depending on your account type. Standard accounts get the regular rates, Pro accounts usually enjoy a 10-15% improvement, and Raw Spread accounts have competitive rates but with commissions on top.

Different Account Types, Different Rates

If you’re holding positions for a while, these differences can really add up, so it’s worth knowing what your account offers.

Finding Real-Time Swap Rates on Our Platform

Okay, so you want to check the current swap rates before placing a trade? Smart move. Here’s exactly how to do it on our platform:

1. Log into your Exness account (if you don’t have one yet, the registration process takes just a few minutes)
2. Navigate to the trading platform – we support MT4, MT5, and our own Exness Terminal
3. Right-click on any currency pair in the Market Watch window
4. Select “Specification” from the dropdown menu
5. Look for the swap values – they’ll be listed as “Swap Long” and “Swap Short”

The values you see are in points, not pips. So if you see -25 for EUR/USD, that’s -2.5 pips for a standard lot.

Actually, there’s an even easier way if you’re using our mobile app. Just tap on any currency pair, scroll down to “Trading Conditions,” and you’ll see the swap rates right there. Pretty convenient, especially when you’re on the go.

Understanding the Market Watch Display

When you’re looking at swap rates in our platform, you might notice they’re displayed differently than other brokers. We show them in points (which is 1/10th of a pip for most pairs), and they’re always per standard lot.

• Positive values: You receive money when holding the position overnight
• Negative values: You pay money when holding the position overnight
• Zero values: No swap charged (rare, but it happens)

Swap-Free Accounts: What You Need to Know

Now, this is where things get interesting for our Filipino traders, especially those who prefer Islamic trading principles. We offer swap-free accounts that eliminate overnight interest charges completely.

These accounts are pretty popular here in the Philippines. You don’t pay or receive any swap charges, regardless of how long you hold your positions. But – and this is important – there are some conditions:

• Must be a Muslim trader (we may ask for verification)
• Account must be used for legitimate trading purposes
• No abuse of the swap-free feature

The application process is straightforward. Just contact our support team through the platform, explain your situation, and they’ll help you convert your account. Usually takes about 24-48 hours to process.

Things to Consider with Swap-Free Accounts

Look, swap-free accounts aren’t always better, even though they sound appealing. If you’re trading currency pairs where you’d normally receive positive swap (like carrying trades), you’re actually giving up potential income.

For example, if you’re long on AUD/JPY and the swap rate is positive, you’d be earning money every night with a regular account. With a swap-free account? You get nothing.

So really think about your trading strategy before making the switch.

Triple Swap Days: Wednesday Surprises

Here’s something that catches a lot of traders off guard – Wednesday is what we call “triple swap day.” Instead of paying or receiving the normal swap amount, you get charged three times the usual rate.

Why? Well, it’s because of how the forex market settles trades. When you hold a position over Wednesday night, you’re technically holding it over the weekend too (even though the market is closed). The settlement happens on the following Monday, so you get charged for Saturday and Sunday as well.

Triple swap schedule:

• Regular days: Monday through Tuesday, Thursday through Friday
• Triple swap day: Wednesday night (6 AM Thursday Philippine time)
• Holiday adjustments: Sometimes moves to Tuesday or Thursday depending on market holidays

I’ve seen traders get surprised by this, especially when they’re holding large positions. A -2.5 pip swap suddenly becomes -7.5 pips, which can be a significant cost if you’re not prepared for it.

Planning Around Triple Swap

Smart traders actually plan their strategies around this. Some will:

1. Close positions before Wednesday 6 AM Philippine time
2. Use the triple swap to their advantage on positive swap pairs
3. Factor the extra cost into their risk management

From what I’ve observed, carry traders often love triple swap days when they’re on the right side of the trade – triple the usual income!

Currency-Specific Swap Patterns

Different currency pairs behave very differently when it comes to swap rates, and understanding these patterns can really help your trading strategy.

Major pairs typically show:

• EUR/USD: Usually negative for long positions due to interest rate differentials
• GBP/USD: Similar pattern to EUR/USD
• USD/JPY: Often positive for long positions (carry trade favorite)
• USD/CHF: Generally positive for long positions

Commodity currencies like AUD, NZD, and CAD:

• Usually offer positive swaps when paired against low-yield currencies
• Popular for carry trading strategies
• More volatile swap rates due to commodity price influences

Emerging Market Considerations

Since we’re in the Philippines, you might be interested in pairs involving emerging market currencies. These typically have higher swap rates (both positive and negative) due to higher interest rate differentials.

But here’s the thing – they’re also more volatile and less liquid. The higher swap rates often come with increased risk, so… well, you need to weigh that carefully.

Managing Swap Costs in Your Trading Strategy

Alright, let’s talk practical application. How do you actually manage swap costs without letting them eat into your profits?

For short-term traders:

• Most day traders close all positions before 6 AM Philippine time
• Scalpers rarely worry about swaps since they’re in and out so quickly
• Swing traders need to factor swap costs into their profit targets

For longer-term position traders:

• Calculate the total swap cost over your expected holding period
• Consider whether positive swap pairs align with your market outlook
• Sometimes it’s worth paying negative swap for a strong directional trade

I’ve noticed that many Filipino traders underestimate how swap costs can add up. A -2 pip daily swap might not seem like much, but over a month, that’s 60 pips – which could be the difference between a profitable and unprofitable trade.

Practical Swap Management Tips

Here are some strategies I’ve seen work well:

1. Use our economic calendar to track central bank meetings that might affect interest rates
2. Monitor swap rate changes – they’re updated daily on our platform
3. Consider pair selection based on swap rates if you’re planning longer holds
4. Factor swap costs into position sizing – larger positions mean larger swap costs

Actually, our platform makes this pretty easy. You can see the projected swap cost right in the order window before you place a trade. No surprises.

Technical Analysis and Swap Rate Impact

Now, here’s something that not many traders think about – swap rates can actually influence price action, especially in the longer term.

Currency pairs with consistently positive carry tend to have underlying bullish bias from institutional carry traders. It’s not the only factor, obviously, but it’s something to keep in mind when you’re doing your analysis.

Carry trade influence on price:

• High-yield currencies often see sustained buying pressure
• Low-yield currencies face selling pressure in risk-on environments
• Risk-off periods can quickly reverse carry trade flows

From our platform data, I can tell you that carry trades make up a significant portion of longer-term positions. When these unwind (like during market stress), you can see some pretty dramatic moves.

Using Swap Information in Trade Planning

Smart traders incorporate swap information into their technical analysis:

• Support and resistance levels might be stronger in the direction of positive carry
• Trend continuation is more likely when it aligns with carry trade flows
• Breakout trades can be more sustainable with positive swap support

This isn’t foolproof, of course, but it’s another tool in your analysis toolkit.

Platform Features for Swap Monitoring

Our Exness platform has several features specifically designed to help you monitor and manage swap costs effectively.

In MetaTrader 4/5:

• Market Watch specifications show current rates
• Account history displays actual swap charges
• Expert Advisors can incorporate swap calculations

In Exness Terminal:

• Real-time swap calculator
• Historical swap rate charts
• Integrated position management tools

The swap calculator is particularly useful – you can input your trade size and holding period to see exactly what the swap cost will be before you commit to the trade.

Mobile App Swap Features

Our mobile app (which works great here in the Philippines, by the way) has some convenient swap-related features:

1. Push notifications for significant swap rate changes
2. Quick swap calculator accessible from the trading screen
3. Position summary showing accumulated swap costs
4. One-tap access to current swap rates for all pairs

To be honest, the mobile app is where most of our Filipino traders check swap rates these days. It’s just more convenient than firing up the desktop platform.

Common Swap Rate Mistakes to Avoid

Look, I’ve seen traders make the same mistakes over and over again when it comes to swap rates. Let me save you some headaches:

Mistake #1: Ignoring triple swap days
Don’t get caught off guard by Wednesday’s triple swap. If you’re holding a position with negative swap, consider closing before Wednesday 6 AM Philippine time.

Mistake #2: Not factoring swaps into profit targets
If you’re planning to hold a position for a week and the swap is -3 pips per day, that’s -21 pips you need to account for in your profit target.

Mistake #3: Assuming swap-free is always better
Sometimes you’re giving up positive swap income. Do the math before switching account types.

Common misconceptions:

• Swap rates are fixed (they change daily)
• All brokers have the same rates (they don’t)
• Swap only matters for long-term trades (it adds up faster than you think)

Recovery Strategies

If you’ve been hit with unexpected swap costs, here’s what you can do:

• Review your trading journal to identify patterns
• Adjust position sizes to account for swap costs
• Consider different currency pairs with more favorable swap rates
• Use our risk management tools to set automatic position closures