A swap, also known as overnight financing, is a charge or credit that may apply when you keep a derivative or Forex position open past the daily rollover time.
Swap rates are based on factors such as interest rates, the instrument being traded, and whether you hold a long (buy) or short (sell) position.
The exact rollover time is specified in the Contract Specifications for each instrument.
How are swaps calculated?
The amount charged or credited depends on:
- The instrument you are trading.
- Whether your position is long or short.
- Your position size.
- The number of nights the position remains open.
Current swap rates can be found in the Contract Specifications within your trading platform.
Can I avoid paying swaps?
If you close your position before the daily rollover time, no overnight financing will be applied.
Some account types may also be eligible for swap-free trading, subject to approval and applicable terms.
