What a Forex Swap Is

A swap is a charge or a credit for holding a trade open past the daily rollover time. It is also called overnight financing or rollover.

When you trade a currency pair, you buy one currency and sell another. Each currency has its own interest rate. The swap reflects the difference between those two rates, together with your provider’s terms. A forex trade also uses leverage. Learn how it works in What Is Leverage in Trading?.

If you close a trade before the rollover time, there is no swap on that trade. For a wider guide, see What Is a Swap Fee in Trading?.

Swap Long and Swap Short

Each symbol has two swap rates:

• Swap long applies to buy trades.
• Swap short applies to sell trades.

The two rates can be different. Either one can be negative or positive. A negative swap is a charge, taken from your account. A positive swap is a credit, added to your account.

Use the rate that matches the direction of your trade.

How the Forex Swap Calculator Works

Platforms show swap rates in different ways. The calculator covers two of these ways.

Mode 1: Swap in Points

Swap per night = swap points × point size × contract size × lot size

The result is in the quote currency, the second currency in the pair. The calculator then converts it into your account currency.

Mode 2: Swap in Money per Lot

Swap per night = swap per lot × lot size

The result is already in money. Use the currency your platform shows next to the rate.

Total Swap

In both modes, the calculator multiplies the swap per night by the number of nights charged.

What Each Input Means

Swap Rate

The swap long or swap short value from your platform. Enter it with its sign. For example, enter −8 for a charge of 8 points, or 2.4 for a credit of 2.40 per lot.

Point Size

The smallest price step for the pair. For pairs quoted to five decimal places, such as EUR/USD, it is 0.00001. For yen pairs quoted to three decimal places, it is 0.001.

Contract Size

The number of units in one lot. For a standard forex lot, this is 100,000. For terms like lot, pip and quote currency, see Forex Trading Terminology: Key Terms Explained.

Lot Size

The size of your trade in lots, such as 0.5 or 1.

Number of Nights

How many rollovers your trade is open for. A trade opened on Monday and closed on Thursday has passed three rollovers. Count the triple-swap night once here, then tick the box.

Triple-Swap Night

Tick this box if one of your nights is the triple-swap night. The calculator then adds two extra nights. The next section explains why.

The Triple-Swap Night

Forex markets close at the weekend, but the swap still covers those two days. To account for them, one night each week is charged three times.

The day of the triple swap is set by your provider. It can also be different for forex pairs and other symbols, and it can shift around public holidays. Check your platform’s contract details for the day.

When you tick the triple-swap box, the calculator counts that night three times. For example, two nights with the triple night included are charged as four.

Worked Examples

These examples use made-up swap rates. Swap rates can change, so always check your platform.

Example 1: A Charge in Points

• EUR/USD buy, 1 lot, account in US dollars.
• Swap long: −8 points. Point size: 0.00001. Contract size: 100,000.
• Held for 3 nights, without the triple night.

Swap per night = −8 × 0.00001 × 100,000 × 1 = −$8. Total = −$8 × 3 = −$24, a charge.

Example 2: A Credit in Money per Lot

• Sell trade, 0.5 lots.
• Swap short: +$2.40 per lot.
• Held for 4 nights, without the triple night.

Swap per night = $2.40 × 0.5 = $1.20. Total = $1.20 × 4 = +$4.80, a credit.

Example 3: A Trade Over the Triple Night

• Buy trade, 0.2 lots.
• Swap long: −$5.00 per lot.
• Held for 2 nights, and one of them is the triple night.

Nights charged = 2 nights + 2 extra for the triple night = 4. Total = −$5.00 × 0.2 × 4 = −$4.00, a charge.

Converting the Points Result

In points mode, the swap is first worked out in the quote currency. The calculator then converts it:

• Account in the quote currency (for example, a US dollar account on EUR/USD): no conversion.
• Account in the base currency (for example, a US dollar account on USD/JPY): the calculator divides by the price of the pair.
• Account in another currency: you enter the rate that turns one unit of the quote currency into your account currency.

Where to Find Your Swap Rates

Open the contract details or specification window for the symbol on your platform. Look for these fields:

• Swap long and swap short: the rates.
• Swap type: for example, in points or in money. This tells you which calculator mode to use.
• Triple-swap day: the day the swap is charged three times.

Some platforms show the swap as a yearly percentage instead. The calculator does not cover this type, because the maths depends on the provider’s day-count method. Your platform shows the swap amount on each open trade, so check it there.

Swaps and Day Trading

A day trader opens and closes trades on the same trading day. If every trade is closed before the rollover time, there are no swaps. The calculator is useful when you plan to hold a trade for one night or more.

Using the Calculator on a Funded Account

FXIFY offers funded forex and CFD accounts. A swap changes your account balance like any other charge or credit. A swap charge lowers your balance, even on a day you place no new trades.

If you plan to hold a trade over several nights, add the expected swap to your planned loss before you enter. Then compare the total with your program’s loss limits on the FXIFY programs page.

FAQ

Why Did I Receive a Swap Credit?

The swap rate for your trade direction was positive. This can happen when the currency you bought has a higher interest rate than the currency you sold. Your provider’s terms also affect the rate.

Why Do Swap Rates Change?

Swap rates follow interest rates and your provider’s terms. When interest rates change, swap rates can change too. Check the current rate before you hold a trade overnight.

Is There a Swap on Gold or Indices?

Yes. CFDs on gold and indices can also have a swap when held overnight. The rate type and the triple-swap day may be different from forex pairs. Check the contract details for each symbol.

Does the Calculator Work With Yearly Percentage Swaps?

No. Percentage swaps depend on the provider’s day-count method and the price at rollover. Use the swap amount your platform shows on the open trade instead.