A swap rate is a rollover fee that a broker credits or debits from their clients’ accounts for holding positions open overnight. It can be either positive or negative, and it is calculated according to whether your position is long or short.
A trader is credited or debited the swap fee once for every day of the week when a position is rolled over (at 00:00 server time ), with the exception of Wednesday (known as triple swap Wednesday), when it is charged 3 times.
To calculate the costs of holding your positions overnight, please follow the steps below:
Select your account currency
Choose instrument for which you would like to calculate the swap value (e.g. currency pair)
Enter the trade size (lots)
Enter the no. of nights you are planning to hold your position for
Click the 'Calculate' button and watch the magic happen
If you'd like to calculate the swap rates for your open positions, the following variables are required: pip value, swap rate and a number of nights you wish to hold your position open for. The following equation is used to calculate swap rates:
Formula: Swap = (Pip Value x Swap Rate x Number of Nights) / 10
For example, let's say you are trading 1 lot of EUR/USD (short) with the account currency being EUR.
1 lot = 100,000
Pip value = $10
Swap rate = 0.44
Swap fee = (10 x 0.44 x 1) / 10 = $0.44
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