Enjoy ultra-low spreads (from 0.0 pips) and super-low commissions when you trade with MM Co!
The spread is the difference between the buy and sell price of a product. For example, when the bid price (or sell price) is 1.14345 and the ask price (or buy price) is 1.14347, the spread is 0.00002 (1.14347 - 1.14345). The spread is a significant cost in an investment product. A lower spread will always provide better value for investors.
Overnight interest (or swap) is the interest paid or received for holding a position overnight. Each investment product has a swap rate, and every trade involves two different swap rates. The resulting swap can add significant profit or an extra cost. The trading platform calculates the swap for you automatically.
22:00 (+1) GMT is considered the start and end of the trading day. At 22:00 (+1) GMT, all open positions are rolled over. Rollover is essentially the settlement process for all positions held overnight.
Markets are closed on Saturday and Sunday, so no settlement can occur. However, banks still calculate interest on positions held over the weekend. Therefore, we will pay or charge 3 times the swap on Wednesday or Friday.
MM Co offers transparent swap rates based on current market rates. To view MM Co swap rates, please log in to your MT5 account.
The formula for calculating swap fees varies depending on the CFD category you are trading.
Forex, Precious Metals, Commodities, Indices: Pip Value * Swap Rate * Number of Lots * Number of Days.
Shares: Open Price * Contract Size * Annual Swap Rate / 360 * Number of Lots * Number of Days (* or /) Currency Exchange Rate.
How are Swap Rates set?
Swap rates depend on the market interest rates of the two currencies, the dealer's handling fees, short-term/forward market conditions, etc.
A swap-free account does not incur swaps or interest charges on overnight positions. Instead, an administration fee is charged to the account holder, deducted from the account balance.
If a swap-free account holds positions after the close of the trading day on Friday, a fee will be deducted from the account balance. Please note: fees for some products may be adjusted without prior notice.
