With the strong development of technology, a series of forex trading platforms have been born. One of the large and reputable trading exchanges that many traders trust and choose is XTB. When trading on XTB forex, traders will be familiar with overnight fees. So what is an XTB swap? Join XForex to find out immediately through the information below!

What is an XTB swap?

When trading on the XTB forex platform, you need to get acquainted and know about XTB swap. So what is the overnight fee? What role do they play in transactions on the XTB forex exchange?

Overnight fees are also known as “Rollover” or “Swap”. It is a fee you have to pay when holding (opening) an order overnight. Usually applied to assets that require holding orders for longer than 24 hours.

Specifically, XForex fees are regulated differently. Partly depends on factors such as Currency, position size, and trade direction. Overnight fees on the XTB forex exchange ensure fairness for all parties involved in the transaction. This means that the profits of the transaction will be contributed to and responsible by both the seller and the buyer.

What types of overnight fees are there on XTB?

When trading on any forex or CFD exchange, you may face fees. The same goes for XTB, one of the fees you will encounter is the overnight fee (XForex fee). So what are the overnight fees on the XTB forex exchange?

XTB swap when purchased

Long Swap on XTB is the amount you pay when you make a purchase of a currency pair and hold that buy order overnight. This fee is applied when the currency you buy has a higher interest rate than the other currency. This is considered a differential interest rate, paying the overnight fee will help you maintain your buy order without affecting that interest rate.

XTB swap when sold

Short Swap on XTB is the amount you pay when you sell a currency pair and hold that sale overnight. This fee is applied when the currency you sell has a lower interest rate than the other currency. This is considered a differential interest rate, paying the overnight fee will help you maintain the sell order without affecting that interest rate.

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Factors affecting the XTB swap level

The biggest factor influencing overnight fees on XTB is the type of transaction order. There are also several other factors that affect the overnight fee such as margin rate, trading currency pair, and overnight order holding time on forex XTB.

XTB forex exchange margin rate

The exchange margin ratio, also known as the loan capital ratio, you need to use to open an order on XTB Forex. This margin rate is proportional to the XTB swap. That means, when you use a high margin ratio, the overnight fee on the XTB forex exchange also increases. This is completely consistent with the theory, that the longer the time to open an order, the greater the risk XTB bears.

Currency pairs traded on XTB Forex

You may not know, the overnight fee for each currency pair is different. Determining the XForex fee depends on the difference between the interest rates of the two currencies in that trading currency pair. Before trading, you need to find out about the overnight fees of the currency pair you are interested in. Avoid having to pay fees that you do not want.

The hold period affects the XTB swap

One of the equally important factors that directly affect the overnight fee is the order holding time. Normally, this overnight fee will be calculated per day. Therefore, any issues related to holding orders overnight or similar will incur additional fees. Therefore, before deciding to hold an order for a long time, consider carefully!

In addition to overnight fees, what other trading fees do traders have to pay on XTB?

Besides the overnight fee, you may have to pay some other fees. Paying fees depends on your actions and trading strategy on the XTB forex platform. Typical examples include Spread fees, transaction fees, or withdrawal fees.

Spread on XTB exchange

XTB exchange spread is the fee you need to pay every time a transaction occurs to buy or sell any currency pair or asset. Spread is the difference between the selling price (ask) and the buying price (bid). XTB spread fees can fluctuate continuously because they depend on many factors. These include Time of purchase, type of asset, market conditions or price fluctuations. This is also considered a part of the profit that the XTB forex exchange earns from traders’ trading activities.

XTB forex exchange deposit fee

In addition to XTB swap, trading fees are also regularly applied. Transaction fees are collected when a trader’s account makes a transaction to buy or sell an asset. XTB forex exchange usually regulates this fee through a percentage depending on each transaction. On the other hand, fees also vary between asset types or trading accounts. For the XTB exchange, transaction fees will be published on the official website. Follow XForex now to update the latest transaction fees!

XTB forex withdrawal fee

When you want to withdraw money from your trading account to your bank, you need to pay a withdrawal fee. Depending on the type of account, this withdrawal fee is regulated differently. Can be a fixed fee, or calculated as a % of the value of the withdrawal amount. Although this may affect your profits, it will be a fee that ensures all deposit/withdrawal issues are resolved quickly. Therefore, to optimize this fee, have a clear plan and limit frequent withdrawals.

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Epilogue

XTB swap is an important fee that any trader needs to know when trading. Understanding the factors that affect XForex fees will help you consider and make smart choices. From there, save costs and optimize profits effectively when trading on the XTB forex exchange. If you are interested in the topic XTB comisiones, please follow XForex immediately to wait for the next article!

FAQ

Are all transactions on XTB subject to overnight fees?

The answer is no. Overnight fees on XTB are only incurred when you open a trade and hold it overnight.

How to minimize overnight fees when trading forex on XTB?

To minimize overnight fees, you can apply the following methods:

• Use low leverage to minimize overnight fees.
• Only take currency pairs with relatively similar interest rates.
• Choose an account with low overnight fees to use.
• Hold trading positions for a short time.

How to calculate overnight rates on XTB forex?

The XTB swap calculation tool can be used on the official website of the exchange. Or you can contact customer service for support.