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Key Takeaways
- Swap: Interest fee charged/credited for holding positions overnight.
- Rollover Time: Daily swap charged at 5 PM EST (server rollover).
- Triple Swap: Wednesday (or Friday) positions incur 3x swap for weekend.
- Positive Swap: You earn interest on certain pairs (buy high-interest, sell low).
- Avoid With: Use swap-free/Islamic accounts to avoid swap fees.
Table of Contents
What is Swap?
Swap (also called rollover) is the interest you pay or receive for holding a forex position overnight. It's based on the interest rate differential between the two currencies in a pair.
When you buy a currency, you're essentially borrowing one currency to buy another. The swap reflects the interest you pay on the borrowed currency minus the interest you earn on the bought currency.
How Swap is Calculated
Swap is charged/credited at rollover time (typically 5 PM EST / 10 PM GMT).
- Daily Charge: Applied every day you hold past rollover.
- Triple Swap: Wednesday positions get 3x swap to cover Saturday/Sunday.
- Broker Markup: Brokers add their own markup to interbank swap rates.
| Day Held | Swap Charged |
|---|---|
| Monday → Tuesday | 1 day |
| Tuesday → Wednesday | 1 day |
| Wednesday → Thursday | 3 days (includes weekend) |
| Thursday → Friday | 1 day |
| Friday → Monday | 1 day |
Positive vs Negative Swap
| Scenario | Result |
|---|---|
| Buy high-interest currency, sell low-interest | Positive Swap (you earn) |
| Buy low-interest currency, sell high-interest | Negative Swap (you pay) |
Carry Trading: Some traders specifically seek positive swap positions. See our Carry Trade Guide.
How to Reduce Swap Costs
- Close Before Rollover: Day trade and close positions by 5 PM EST.
- Islamic Account: Swap-free accounts for religious or preference reasons.
- Low Swap Broker: Some brokers offer reduced swap rates.
- Seek Positive Swap: Trade pairs where your direction earns swap.
Low Swap Brokers
| Broker | Swap Rates | Islamic Account |
|---|---|---|
| Exness | Competitive | Yes |
| IC Markets | Competitive | Yes |
| XM | Average | Yes |
Frequently Asked Questions
What is swap in forex?
Interest fee charged or credited for holding positions overnight, based on interest rate differential.
When is swap charged?
At rollover time, typically 5 PM EST / 10 PM GMT daily.
What is triple swap Wednesday?
Positions held Wednesday-Thursday get 3x swap to cover Saturday and Sunday when markets are closed.
Can I earn from swap?
Yes. Positive swap occurs when you buy a currency with higher interest than the one you sell.
How do I avoid swap fees?
Close positions before rollover, use Islamic accounts, or day trade exclusively.
What is an Islamic account?
A swap-free account that doesn't charge or pay interest, designed for Sharia compliance.
Do all brokers charge the same swap?
No. Brokers add different markups to interbank rates. Compare swap before choosing a broker.
Where can I see swap rates?
In MT4/MT5: Right-click symbol → Specification → Swap Long/Short. Or on broker's website.
Does swap affect scalping?
No. Scalpers close positions before rollover, so swap doesn't apply.
Is swap the same as commission?
No. Commission is charged on entry/exit. Swap is for holding overnight.
Why is my swap higher than listed?
Displayed swap is per lot. Your total swap = swap rate × lot size × days held.
What is rollover in forex?
The process of extending the settlement date of an open position—swap is the cost of this extension.
