EDUCATION
Calculating Swaps
Understand rollover interest and how swaps are credited or debited on positions held overnight.
01
WHAT IS A SWAP
Your content goes here. Edit or remove this text inline or in the module Content settings. You can also style every aspect of this content in the module Design settings and even apply custom CSS to this text in the module Advanced settings.
When a trade is held open overnight, a swap rate is credited or debited as a rollover interest rate. When a position is rolled over, the swap rate is credited or debited once for each day of the week.
02
SWAP CALCULATION
On your open positions, you can determine the interest rate differential between the two currencies of the currency pair.
Choose your account’s base currency, a currency pair, an account type, a trade size in lots, and leverage.
The following is how the calculation is done:
Swap = (One Point / Exchange Rate) * Trade Size (Lot Size) * Swap Value in Points
03
EXAMPLE
One Point: 0.00001
Account Base Currency: EUR
Currency Pair: EUR/USD
Exchange Rate: 1.0895 (EUR/USD)
Volume in Lots: 5 (One Standard Lot = 100,000 Units)
Short Swap Rate: 0.15
Swap Value = (0.00001 / 1.0895) * (500,000 * 0.15)
Swap Value is €0.69
*If the result is negative, you will lose money; if the result is positive, you will make money.
GET STARTED
Ready to trade with a broker built for precision?
Open an account in minutes and access 71,000+ instruments with transparent pricing, deep liquidity and institutional-grade execution.