<p>The <strong>lease rate</strong>, also known as the funding rate or swap rate, is a fee charged by brokers to traders who hold overnight positions in Forex and CFD markets. It reflects the cost of borrowing or lending currencies. In the context of trading platforms like MetaTrader 5, offered by STB Provider, understanding the lease rate is crucial for managing your trading costs effectively.</p>

<h2>How It Works</h2>

<p>The lease rate is determined by the interest rate differential between the two currencies involved in a trade. For instance, if you're holding a long position in EUR/USD, you're effectively borrowing USD and lending EUR. The lease rate is the difference between the interest rates of these two currencies. If the EUR interest rate is higher, you'll pay a positive lease rate; if the USD interest rate is higher, you'll receive a negative lease rate, which is then credited to your account.</p>

<p>Here's a simple breakdown:</p>

<ul>
  <li>Positive lease rate: Paid by the trader (debit from the trading account).</li>
  <li>Negative lease rate: Received by the trader (credit to the trading account).</li>
</ul>

<p>The lease rate is typically expressed as an annual percentage, but it's applied daily. So, if the lease rate is 2%, you'll pay or receive 2/365 of that rate per day for each lot traded.</p>

<h2>Why It Matters for Traders</h2>

<p>Understanding and managing the lease rate is essential for traders, as it can significantly impact your trading costs and profits. Here's why:</p>

<ul>
  <li><strong>Cost management</strong>: High lease rates can erode your profits or increase your losses, especially if you're holding long-term positions. Monitoring and managing your lease rate exposure can help you keep your trading costs under control.</li>
  <li><strong>Risk management</strong>: Large changes in lease rates can cause significant fluctuations in your account's equity, which can trigger margin calls or stop-outs if not managed properly.</li>
  <li><strong>Opportunity identification</strong>: Positive and negative lease rates can create opportunities for traders. For instance, you might choose to hold a long position in a currency with a high interest rate if the lease rate is positive, as you'll receive a credit.</li>
</ul>

<h2>Example</h2>

<p>Let's say you're trading EUR/USD with STB Provider on MetaTrader 5, with a leverage of 1:300 and a 1 lot position. The current lease rate is 2% per annum. This means you'll pay or receive 0.0055% (2/365) of the rate per day for each lot traded.</p>

<p>If the lease rate is positive, you'll pay 0.0055% of your position's value per day. For a 1 lot position, that's approximately $5.50 per day, or $38.50 per week. Over a month, that's around $154. If the lease rate is negative, you'll receive this amount instead.</p>

<h2>Key Takeaways</h2>

<ul>
  <li>The lease rate is a daily fee charged for holding overnight positions in Forex and CFD markets.</li>
  <li>It's determined by the interest rate differential between the two currencies involved in a trade.</li>
  <li>Managing the lease rate is crucial for cost management, risk management, and opportunity identification.</li>
  <li>Traders should monitor lease rates and adjust their trading strategies accordingly to minimize costs and maximize profits.</li>
</ul>