Regarding the policies of several Central Banks regarding changes in interest rates, InstaForex released a recent statement informing that swap rates had changed. The provisions prepared to prioritize trading requirements optimally are effective from 20 July 2015. There is no further information about which pairs will change and how much the difference will be. So, traders can immediately check the trading specifications section on the InstaForex official website to get more detailed information.

This move is not the first time that InstaForex has made changes to the swap rates. There are changes in swaps that cannot always be set in the same range, as they are always influenced by external factors related to current market conditions.

Due to this change, InstaForex urges its traders to prepare to adapt their trading strategy to the new swap rates. This is, of course, related to the swap effect on the results of overnight trading positions. Swaps can be positive or negative. Profits can increase if traders get positive swaps, so some long-term traders carefully weigh in their chosen pairs and positions to get positive swaps.

Due to the opportunity to earn more from positive swaps, some traders adopt a trading style that focuses on earning more from swaps. This strategy is familiarly known as the Carry Trade.

Use Swap-free Accounts

Traders who cannot avoid floating overnight positions but do not want to be bothered with swap calculations can apply for a swap-free account. This type of account can also be used by Muslim traders prohibited from transacting with interest rates (swap).

However, due to the lack of information on the InstaForex website about swap-free accounts, traders may need to contact customer support to get clearer registration information and other conditions. One thing is sure, InstaForex does not limit the length of time the positions are floating on swap-free accounts. This is a profitable rule because at certain brokers, traders who have swap-free accounts usually get a time limit to hold their positions floating.