Swap
Understanding Forex Swap Charges
What is a Swap?
A forex swap, also known as a rollover fee, is the interest adjustment applied to trading positions that remain open overnight. Since forex trading involves buying one currency while selling another, traders may either pay or receive interest depending on the difference between the interest rates of the two currencies involved.
Swap values can be either positive or negative and vary between currency pairs. The amount charged or credited depends on factors such as market interest rates, liquidity conditions, and whether the position is held as a buy (long) or sell (short).
Overnight swaps are generally processed once per trading day on open positions only. To account for weekend settlement, a triple swap may apply on specific days depending on the instrument traded.
Important Swap & Rollover Information
- Swap or rollover charges are applied to positions that remain open overnight.
- Swap rates are processed daily at the platform rollover time (00:00 platform time).
- Swap rates are calculated separately for each trading instrument and may vary depending on market conditions.
- Charges or credits are based on trade size, position direction (long or short), and the interest rate difference between the currencies traded.
- Swap adjustments are processed daily at the platform rollover time.
- Triple swaps may apply on certain trading days to account for weekend settlement.
- Swap values can be either positive or negative.
- Current swap rates can be viewed directly from the trading platform specifications for each instrument.