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Why is the interest rate (Swaps) tripled on Wednesday?
Why is the interest rate (Swaps) tripled on Wednesday?
Updated over 6 months ago

If you hold your position overnight on a Wednesday night, you may have to pay or receive triple interest rate. To comply with international banking practices, foreign exchange transactions are settled two trading days later. Consequently, overnight interest rate is calculated for the settlement date. Therefore, three days of interest rate is calculated on Wednesday, at market close, to account for markets being closed over the weekend.

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