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What happens when I leave my Forex positions open overnight?

In Forex, when you keep a position open through the end of the trading day, you will either be paid or charged interest on that position, depending on the underlying interest rates of the two currencies in the pair. In the examples below, we'll show you how to calculate the amount that will be credited or charged, factoring in only the interest rates and the broker's commission, but in reality, the "storage" for holding a position overnight may depend on a variety of factors:

  • The current interest rates in the two countries
  • The price movement of the currency pair
  • The behavior of the forward market
  • The swap points of the broker's counterparty

Here's what we mean when we say storage depends on interest rates:

Let's say that the interest rate of the European Central Bank (ECB) is 4.25% and the Fed (US) interest rate is 3.5%. You open a short position (Sell) on EURUSD for 1 lot. Here, you are essentially selling 100,000 EUR, borrowing at a rate of 4.25%. In selling EURUSD, you are buying US Dollars, which earn interest at a rate of 3.5%. When the interest rate of the country whose currency you are buying is more than the interest rate of the country whose currency you are selling, storage will be added to your trading account (this may not always hold true, as brokers often charge a fee or markup for overnight swaps). If the interest rate is higher in the country whose currency you are selling, as is the case in this example (4.25 > 3.5), storage will be deducted from your account.

Now let's say the broker charges an extra 0.25% for the swap. Add this to the 0.75% difference in the interest rates and you get 1.00%. For the position described above, the storage you will be charged will be equivalent to being charged 1.00% interest.

Calculating the swap on a short position: Here we are buying USD and selling EUR. Since the interest rate of the currency we are selling (EUR: 4.25%) is higher than that of the currency we are buying (USD: 3.5%), we will add the Markup in the formula:

SWAP = (Contract × (InterestRateDifferential + Markup) / 100) × Рrice / DaysPerYear

  • Contract: 100,000 EUR (1 lot)
  • Рrice: EURUSD - 1.3500
  • InterestRateDifferential: 0.75% (the difference between the interest rates in Europe and the US)
  • Markup: 0.25% (the broker's commission)
  • DaysPerYear: 365 (number of days in a year)

Calculation:

  1. SWAP = (100,000 × (0.75 + 0.25) / 100) × 1.3500 / 365 = 3.70 USD

When your short position on EURUSD is rolled over to the next day, 3.70 USD will be debited from your trading account for storage.

Calculating the swap on a long position: When we buy EURUSD, we are buying EUR and selling USD. Since the interest rate of the currency we are buying (EUR: 4.25%) is higher than that of the currency we are selling (USD: 3.5%), we will subtract the Markup in the formula:

SWAP = (Contract × (InterestRateDifferential - Markup) / 100) × Рrice / DaysPerYear

  1. SWAP = (100,000 × (0.75 - 0.25) / 100) × 1.3500 / 365 = 1.85 USD

When your long position on EURUSD is rolled over to the next day, 1.85 USD will be credited to your trading account.

Please Note: When the difference between the interest rates is smaller than the broker's commission, you will be charged storage for both Buy and Sell orders.

Calculating a swap for a short position with a volume of 0.1 lot in BTCUSD: SWAP Short = 0,1 ×( - 6.0000) = - 0, 6 USD

Transfer of open positions to the next day for CFDs on commodities, CFDs on indices and commodities, CFDs on indices and CFDs on cryptocurrencies: the swap will be indicated in the instrument currency for 1 lot .

The swap rate for metals can be calculated in the same way as for currency pairs.

You can find our swap points for different trading instruments in our Contract Specifications (Swap Short and Swap Long). Swap rates are subject to change. The swap rates in our "Contract Specifications" are updated daily at 21:00 EET. You can also calculate the swap charges for long and short positions with our "Trader's Calculator".

Please note: when rolling over positions in Forex, spot metals, commodity CFDs and index CFDs, an overnight charge is applicable, and from Wednesday to Thursday the credit/debit charge carries at a triple rate. This is due to the fact that Friday is the value date of the position open on Wednesday. During the transfer of a position overnight from Wednesday to Thursday, the value date should increase not by 1, but by 3 days. Thus, it is postponed to Monday. Therefore, the store from Wednesday to Thursday is credited / debited threefold.

When USDTRY positions are rolled over from Thursday to Friday, a triple swap rate will be charged.

When cryptocurrency positions are rolled over from Friday to Monday, a triple swap rate will be charged.

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