Swap points are profits generated from the interest rate difference between the two currencies being traded, and are generated when a held position is carried over to the next day (overnight position).

For example, if you sell a currency with a low interest rate, such as the Japanese yen, and buy a currency with a high interest rate, such as the Australian dollar, you can carry over that position to the next day and receive the swap points for that period as profit.

Conversely, if you buy a currency with a low interest rate and sell a currency with a high interest rate, the interest rate differential will be negative and you will have to pay swap points.

Swap points are usually generated every day from the next business day after you hold a position. When trading, be sure to check the swap points for each stock in advance, and you can use them as part of your daily profits.

*Swap points fluctuate daily depending on rates and market trends.