When you hold a leveraged position past the end of the trading day, an overnight charge (also known as a swap or rollover fee) may apply. This fee reflects the cost of maintaining your position overnight.
How Overnight Charges Work
- Charged when positions are held past the daily cutoff time (typically 22:00 GMT for forex).
- Calculated based on:
- The size of your position
- The interest rate differential between the currencies or instruments traded
- Whether the position is long (buy) or short (sell)
- The size of your position
Factors Affecting Overnight Charges
- Currency Pair or Instrument
- Different instruments have different interest rates, affecting the charge.
- Different instruments have different interest rates, affecting the charge.
- Position Size
- Larger positions incur larger overnight fees.
- Larger positions incur larger overnight fees.
- Days of the Week
- On Wednesday, the fee may be triple to account for the weekend.
