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Calculating Swaps

What is a Swap (Overnight Financing)?

A swap is a financing adjustment applied to an open position held overnight across the daily market close.

The magnitude and direction of a swap depend on the specific financial instrument, position direction (Long or Short), nominal trade volume, and underlying financing terms.

Swaps can be either positive or negative. Depending on applicable rates, the adjustment may be credited to or debited from your trading account.

In Forex and CFD trading, swap rates are primarily influenced by interest rate differentials between pair currencies, overnight borrowing costs, and instrument-specific financing parameters.

Swap schedules and conditions vary across asset classes and account types. Applicable values should be verified within the instrument specifications or directly via the trading platform.

How Swaps Are Calculated

Swap calculations follow standard methodologies established for each asset class.

Key factors influencing the adjustment include:

  • Underlying currency pair or base asset
  • Position direction — Buy (Long) or Sell (Short)
  • Position volume (nominal size)
  • Prevailing exchange rate or asset price
  • Applicable daily swap rate
  • Account base currency
  • Number of days the position is held overnight (including weekend rollover adjustments)
  • Applicable overnight financing terms

Swap rates and accumulated adjustments are displayed in real time within the platform’s contract specifications and open position details.

Calculation Example

Consider the following parameters:

  • Currency Pair: EUR/USD
  • Trade Volume: 5 Standard Lots (500,000 EUR nominal value)
  • Position Direction: Long or Short
  • Applicable Swap Rate: Fixed daily rate according to instrument specifications

The monetary swap amount is calculated in accordance with the EUR/USD contract specifications and converted to the account base currency.

  • Positive value: Amount credited to the trading account.
  • Negative value: Amount debited from the trading account.

Exact swap rates and rollover schedules should always be referenced in the current instrument specifications.

Available Payment Methods:

Available payment methods may vary depending on account type, jurisdiction and other applicable conditions.

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