- What Are Exness Overnight Fees?
- Does Exness Charge Overnight Fees?
- Types of Overnight Fees on Exness
- Exness Overnight Fee Structure
- How to View Overnight Fees on Exness MT4/MT5
- Calculating Exness Overnight Fees
- Strategies to Benefit from Overnight Fees
- Exness Swap-Free Account: Islamic Trading Option
- Impact of Weekends and Holidays on Overnight Fees
- Comparing Exness Overnight Fees with Other Brokers
- Frequently Asked Questions
What Are Exness Overnight Fees?
Overnight fees, also known as swap fees or rollover rates, are costs or income incurred when a trade remains open overnight. These fees reflect the cost or profit of holding a trade until the next day and depend on the interest rate differential of the currencies being traded.
Does Exness Charge Overnight Fees?
Yes, Exness charges fees for maintaining open positions after the market closes. These fees apply to forex, commodities, indices, and cryptocurrencies. The amount depends on the market and asset. Exness may offer swap-free accounts for traders unable to trade with interest due to religious or other reasons.
Types of Overnight Fees on Exness
Exness may charge overnight fees, which can be either positive or negative. This depends on the trade direction and the interest rate differential. It relates to the currencies or assets you are trading.
Positive Swap (Credit)
- Definition: A positive swap occurs when the interest rate of the currency the trader is buying is higher than the interest rate of the currency they are selling. In such cases, the trader earns interest instead of paying it.
- Example: Holding a long position in a currency pair where the base currency has a higher interest rate than the quoted currency can result in earning a positive swap.
- Benefits for Traders: This can be an attractive option for traders employing a carry trade strategy, aiming to profit from interest rate differentials.
Negative Swap (Debit)
- Definition: A negative swap occurs when the interest rate of the currency a trader is buying is lower than the interest rate of the currency they are selling. In this case, the trader pays interest.
- Example: Holding a long position in a currency pair where the base currency has a lower interest rate than the quoted currency will result in a charge to the trader’s account.
- Impact on Trading Strategies: Negative swaps can reduce the profitability of holding positions long-term, especially in strategies relying on small price movements.
Exness Overnight Fee Structure
Knowing how Exness charges overnight fees is important for traders to control their trading plans and costs. These fees vary depending on what is being traded and the account being used.
Fees by Instrument Type
- Forex: Overnight fees for forex pairs are based on the interest rate differential between the two currencies involved in the trade.
- Commodities: Fees for commodities such as gold and oil may include considerations of storage costs and market demand.
- Indices and stocks: Overnight fees for individual indices and stocks may reflect the underlying cost of taking positions in these markets.
Account Type Impacts Overnight Fees
- Standard and Professional Accounts: Professional accounts may offer lower swap rates due to higher trading volumes.
- Swap-Free Accounts: Designed for traders who cannot bear or receive interest for religious reasons, these accounts do not have swap fees but may include other administrative fees.
How to View Overnight Fees on Exness MT4/MT5
- Open MT4/MT5: Launch the platform and log into your account.
- Market Watch Window: Find the instrument you are trading.
- Right-Click and Select ‘Specifications’: Here, you can view details, including swap rates for long and short positions for the selected instrument.
Calculating Exness Overnight Fees
Formula: Swap = (Pip Value * Swap Rate * Number of Nights) / 10
Example Calculation: For a trader holding a long position on EUR/USD, the calculation will involve the pip value of the position, the swap rate as provided in the specifications, and the number of nights the position is held.
Strategies to Benefit from Overnight Fees
- Carry trades: Focus on currency pairs with positive interest rate differentials where the currency bought is at a higher rate than the currency sold, thus earning a swap profit.
- Short-term trades: Avoid overnight fees by closing positions before the daily close, especially if trading for price volatility rather than interest rate gains.
Exness Swap-Free Account: Islamic Trading Option
- Features: A swap-free account complies with Sharia law by not charging or crediting interest.
- Eligibility: Generally available to clients of Islamic faith, though conditions may apply based on the trader’s location and account verification.
Impact of Weekends and Holidays on Overnight Fees
- Triple Swaps on Wednesdays: Most brokers charge triple swaps on Wednesdays to account for weekend settlements.
- Holidays: Special adjustments may be made on holidays when markets are closed, affecting swap fees.
Comparing Exness Overnight Fees with Other Brokers
- Competitive Analysis: Compare Exness’ swap rates with those of other leading brokers.
- Transparency: Exness provides clear information about overnight fees, which can be an advantage over brokers with less transparent fee structures.
Frequently Asked Questions
Are there any instruments that can be held overnight for free on Exness?
Exness usually charges an overnight fee due to the cost of keeping a trade open. However, Exness has special accounts that do not have these fees, mainly for traders who cannot handle fees for religious reasons. In these accounts, there are no overnight fees for most trades.