Spread Swap Indicator for MetaTrader 4

The Spread Swap Indicator is a simple tool that helps traders identify the spread and swap rates of forex pairs. It is a custom forex trading indicator that is designed to work with the MetaTrader 4 platform. The indicator shows the current spread, buy/sell swap on the lower window. The idea of the indicator is to avoid trades when swaps and spreads are high.

Why is it Important?

The Spread Swap Indicator is important because it helps traders limit broker fees by not entering the trade when the swaps and spreads are high. When the spread is known in real-time, the transaction cost can be significantly reduced by simply avoiding taking trades during these times when spreads and swaps are high.

How Does it Work?

The Spread Swap Indicator works by displaying three handy pieces of information: Buy and Sell Swap is the interest that 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).

What are the Benefits of Using it?

The benefits of using the Spread Swap Indicator are as follows:

• It helps traders to limit the broker fees by not entering the trade when the swaps and spreads are high.
• It helps traders to identify the spread and swap rates of forex pairs in real-time.
• It is a simple tool that is easy to use and understand.

What are the Limitations of Using it?

The limitations of using the Spread Swap Indicator are as follows:

• It does not generate signals.
• It is not a primary indicator.
• It does not tell about BUY and SELL signals but about swaps and spreads.

How to use the Spread Swap Indicator?

To use the Spread Swap Indicator, follow these steps:

1. Apply the Spread Swap Indicator to the chart.
2. Wait for the indicator to display the current spread and swap rates.
3. Avoid taking trades when the swaps and spreads are high.

Conclusion

The Spread Swap Indicator is a simple tool that can help traders limit broker fees by not entering the trade when the swaps and spreads are high. It is easy to use and understand, and it can be customized to suit the needs of individual traders. By using the Spread Swap Indicator, traders can identify the spread and swap rates of forex pairs in real time, which can help them to make more informed trading decisions.