A Swap (also known as an overnight financing fee or rollover fee) is an adjustment applied when a trading position remains open overnight.
The swap amount is determined by factors including:
- The trading instrument.
- Whether the position is Long (Buy) or Short (Sell).
- The applicable swap rate.
- The number of lots held.
How Is Swap Calculated?
The general swap calculation is:
Daily Swap = Number of Nights × Swap Rate × Number of Lots × Point Value
The swap rate may differ depending on the instrument and market conditions.
Important Notes
- Swap charges or credits may apply when positions are held overnight.
- Swap rates can vary between instruments and may change based on market conditions.
- A triple swap adjustment may apply on certain days to account for weekend settlement. The applicable day depends on the trading instrument and server time.
- Traders should check the latest swap rates before holding positions overnight.