Why are swap rates tripled on Wednesdays and Fridays?

This article explains why swap rates are tripled on Wednesdays and Fridays.

Understanding the Triple Swap Rates

Holding positions overnight can incur swap rates, also known as rollover rates. These rates are the interest paid or earned for maintaining a position overnight. On certain days, swap rates are tripled to account for the settlement of trades over non-trading days. This usually happens on Wednesdays and, in some cases, Fridays.

The Mechanics Behind Triple Swap Days

In the Forex market, trades typically settle two business days after the transaction date, known as T+2 settlement. For trades executed on Wednesday, the settlement occurs on Friday. To account for the weekend, when the market is closed, swaps are tripled on Wednesdays to cover the interest for Saturday and Sunday. For other instruments, the triple swap is applied on Fridays.