The trading of currencies and metals in the forex market lasts for 24 hours, and at 5:00 PM New York time the deals are fixed for more than 24 hours and the swap is made on the regular accounts of the company if the deal is not closed before 5:00 PM in the New York time, The rollover process occurs automatically for open contracts, where every 24 hours the company pays or takes interest, and therefore an extension fee is formed on it, which is in fact usurious interest that is imposed on the transaction that has been opened for a day or more, and this is what is known as the swap price or commission.
Islamic Accounts are accounts that are free of interest in all its forms, and no matter how long the contract is opened, do not pay or earn any swap or interest on any of the contracts for difference on currency pairs, indices, commodities, stocks, this means that the swap interest will not be applied on your account if it is an Islamic type.
The swap is the largest part in the legal forms, it is associated with usurious interest because the interest rate of currencies is included in the calculation of this commission, and traders who do not have the price of the full contract can trade using leverage that allows them to trade contracts much larger than their accounts without any interest rate as well.
The interest rate that is calculated is directly related to the interest rates in the central banks in the countries representing the currencies, and it is a central factor in calculating the overnight commission rate. Therefore, within the scope of the Islamic account request, it is dispensed with paying or obtaining these benefits in exchange for overnight deals.
The rollover process is seen by some as being associated with usurious interest because the interest rate of currencies is included in the calculation process for this commission, while others do not see it as a usurious interest, but rather a commission in exchange for the service to extend the life of the commercial contract.The calculation is performed as follows:
Swap = One Point / Exchange Rate * Lot Size * Swap Value in Points
One Point: 0.00001
Account Base Currency: EUR
Currency Pair: EUR/USD
Exchange Rate: 1.0895 (EUR/USD)