Spread Swap Indicator
Platform: MT4 Type: Informational Last update: October 6, 2024The Spread Swap indicator for MT4 is a simple tool showing current spread and swap rates and you can download it here for free and review by yourself.
How does it work and how to use the indicator
The indicator is very simple, but it is recommended to have it because it is very useful during highly volatile market conditions. When the spread is known in real-time, the transaction cost can be significantly reduced by simply avoiding to take trades during these times when spreads and swaps are high.
This tool is displayed in a sub window located just below the main chart and it displays three handy pieces of information:
Buy and Sell Swap
is the interest which accrues for holding an open forex trading position (these are displayed in blue and red color) and it is also commonly termed the rollover in the finance industry. The rollover interest can be a profit or loss depending on which pairs you trade and it is either paid or charged to you at the end of each day when the markets are open.
Spread
is the difference between the bid and ask prices when you trade currencies, and also the amount you pay the broker on each trade for settling the trade for you (this one is displayed in yellow color).
Bottom Line
The Spread Swap indicator doesn’t generate signals but you will know when the spread and swap are high, therefore you will know when to avoid trading. Knowing when to avoid losing is critical.
