The swaps market operates in accordance with the laws of supply and demand. If the interest rate you offered in a swap is found to be attractive relative to other swaps offered on the market, investors will borrow funds from you and will use them to open positions traded on margin. However, if the interest rate you ask is too high, investors will turn to other lenders – your contract will not generate profit in that case. For this reasons, it is extremely important to set the interest rate for a swap at a competitive level compared to other offers available on the market.
To find out about the current situation on the swaps market, refer to the market liquidity chart. It shows the level of liquidity required by investors at a given moment as well as the swaps market depth at a given interest rate level. This allows you to see the maximum interest rate which investors borrowing funds are ready to accept at a given moment.
The swap settlement process is fully automated and takes place once a minute. Swaps are ranked according to the interest rate asked, from the lowest to the highest. Funds coming from these swaps are allocated to meet positions opened by investors on the margin trading market, until these are fully filled. Swaps used in the process bring profit, while contracts asking interest rates which were found to be too high do not make any money.