Swap calculator
Calculate the swap fees for holding positions overnight
📊 Understanding Swap Fees
Swap fees are the interest rate differentials between the two currencies in a forex pair. When you hold a position overnight, you either pay or receive swap fees based on the interest rate differential and your position direction.
Long positions on high-interest currencies typically earn positive swap, while short positions usually incur negative swap fees.
🔍 How Swap Fees Are Calculated
Swap fees depend on several factors:
- Currency Pair: Different pairs have different interest rate differentials
- Position Size: Larger positions incur higher swap fees
- Direction: Long and short positions may have different swap rates
- Broker Rates: Each broker sets their own swap rates
❓ Frequently Asked Questions
What are swap fees in forex trading?
Swap fees are the interest rate differentials charged or credited for holding positions overnight. They reflect the difference in interest rates between the two currencies in a pair.
When are swap fees applied?
Swap fees are applied at 5 PM EST (New York close) for positions held overnight. On Wednesdays, triple swap is usually applied to account for the weekend.
Can swap fees be positive?
Yes, if you're long on a currency with higher interest rates than the base currency, you may receive positive swap fees. This is called a "carry trade."