At Crypto GT, you can mainly enjoy virtual currency FX. The leverage is 500 times, which can be said to be quite high leverage. In addition to leverage, traders may be concerned about swap points.
What is a swap point?
A swap point is the interest rate difference between two currencies. In trading, if you sell a low-interest currency and buy a high-interest currency, you can get profit from the interest rate difference for the number of days you hold the position. There are also a certain number of medium- to long-term traders aiming for this swap point. Swap points can be positive or negative, so some traders care about this point when trading. This is a point that long traders who cross the day should be concerned about. Swap points differ depending on the Forex company and currency pair, so please check the broker’s website.
Advantages of swap points
The advantage of swap points is that if the interest rate difference is positive, you can make a profit just by holding a position. There are not many traders who only care about swap points, but there are a certain number of traders who mainly play long.
Disadvantages of swap points
The advantage of swap points is that if the interest rate difference is negative, a loss will occur just by holding a position. Also, like scalping and day trading, swap points will not be given if you settle on the same day.
Profits earned from swap points are taxable in the same manner as profits earned from foreign exchange gains. In the case of a corporate account, it will be taxable when the swap points are granted. In the case of a personal account, the tax will be applied at the timing of payment and actual receipt.
Swap point occurrence time
Crypto GT has a set time for swap points to occur. Crypto GT uses GMT+3 as the server time and is known to occur at 3:00, 7:00, 11:00, 15:00, 19:00, and 23:00 respectively. If you hold a position over this time period, a swap point will be generated. If you are concerned about swap points, it is better to settle immediately with a short-term trade.
Swap points by currency
|Average Swap Rate|
|Average Swap Rate|
Open a free account
Crypto GT can open an account for free. Let’s open an account and start trading by referring to the article below.