Swap

Gulfbrokers | Swap
A swap in CFD trading means an interest added or withdrawn for holding open position overnight.

Generally, a swap is a type of a financial derivative that is usually used to hedge a certain financial risk (change in interest rates, exchange rates) or to speculate. This is an agreement of two parties on future payments from the underlying asset. A swap is an entity's obligation to a client to buy or sell at a specified time, under specified conditions.
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