The swap, also known as a rollover, is a type of interest charged on positions held overnight on forex instruments and Contracts For Difference (CFDs). The charge is applied to the nominal value of an open trading position overnight.

Depending on the swap rate and the position taken on the trade, the swap value can be either negative or positive. In other words, you will either have to pay a fee or be paid a fee for holding your position overnight. In addition, we also must take into account that this commission could be charged three times on a Friday or Wednesday, depending on each instrument involved.

Factors that affect the exact calculation of the swaps include:

• The difference between the current interest rate of the each country

• The price movement of the currency pair

• The behavior of the forward market

• The swap points of the broker or liquidity provider counterparty

Examples include:

1. Forex:

The open position of 2 lots in EURUSD:

Swap Value (Long), Pips in Contract Specifications = -0.688

Swap Value (Short), Pips in Contract Specifications = -0.063

Please note that 1 pip is equal to 0.00010

Contract value: 1 lot = 100,000 EUR

3-days swap on Wednesday

Swap Calculation:

Option 1:

Swap Value (Long) = notional value * swap = volume * contract size * Swap = (2 * 100,000) * (-0.0000688) = - 13.76 USD
Swap Value (Short) = notional value * swap = volume * contract size * Swap = (2 * 100,000) * (-0.0000063) = - 1.26 USD

Option 2:

Swap (long) = 1 pip value * Swap value

1 pip = 2 *100,000 * 0.0001 = 20 USD
Swap = 20 *( -0.688) = -13.76 USD

Swap (short) = 1 pip value * Swap value

1 pip = 2 *100,000 * 0.0001 = 20 USD
Swap = 20 *( -0.063) = -1.26 USD

2. Indices:

Open position of 10 lots in Germany40

Swap Value (Long), Daily interest rate in Contract Specifications = -0.00681%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -2.45% (annual)

Swap Value (Short), daily interest rate in Contract Specifications = -0.0986%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -3.55% (annual)

Daily swap = annual swap / 360

Please note that for this example Germany40 quotes at 15,000 points

Please note that 1.00 point in Germany40 is equal to 1.00 EUR

3-days swap on Friday

Example with daily swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15000) * (-0,0000681) = - 10,215 EUR

Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15000)*(-0,0000986) = - 14.79 EUR

Example with annual swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15,000)* (-2.45/100/360) = -10,215 EUR.
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15,000)* (-3.55/100/360) = -14.79 EUR.

3. Commodities

Example with Gold

Open position of 1 lots in GOLD (100 onz)

Swap Value (Long), Pips in Contract Specifications = -9,916

Swap Value (Short), Pips in Contract Specifications = -5,817

Please note that 1 pip is equal to 0.010 and the difference between 1801,000 - 1800,000 = 1 USD, so the value of 0.010 is equal to 0.01 USD.
3-days swap on Wednesday

Swap Value (Long) = Volume * Contract size * Swap = 1 * 100* (-0.09916) = - 9,916 USD

Swap Value (Short) = Volume * Contract size * Swap = 1 * 100* (-0.05817) = - 5,817 USD

Example with Brent

Open position of 1 lots in BRENT (100 barrels)

Swap Value (Long), Daily interest rate in Contract specifications = -0.00231%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -0,83% (annual)

Swap Value (Short), daily interest rate in Contract specifications = -0.01975%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -7,11% (annual)

Daily swap = annual swap / 360
Please note that for this example Brent quotes at 67.00 USD
Please note that 1.00 point in Brent is equal to 1.00 USD
3-days swap on Friday

Example with daily swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap= (1*100*67.00)*(-0.0000231) = - 0.15477 USD

Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (1*100*67.00)*(-0.0001975) = - 1.32325 USD

Example with annual swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price)* Swap= (1*100*67.00)* (-0.83/100/360) = - 0.15477 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price)* Swap= (1*100*67.00)* (-7.11/100/360) = - 1.32325 USD

4. CFDs on Stocks

Open position of 10 lots in Apple

Swap Value (Long), Daily interest rate in Contract specifications = -0.01686%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -6.08% (annual)

Swap Value (Short), daily interest rate in Contract specifications = -0.01644%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -5.92% (annual)

Daily swap = annual swap / 360
Please note that for this example Apple quotes at 125 USD
Please note that 1.00 point in Apple is equal to 1.00 USD
3-days swap on Friday

Example with daily swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00)*(-0,0001686) = - 0.21075 USD

Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00)*(-0,0001644) = - 0.2055 USD

Example with annual swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00)* (-6,08/100/360) = - 0.21075 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00)* (-5,92/100/360) = - 0.2055 USD

5. Digital currencies

Open position of 1 lot in BTCUSD

Swap Value (Long), Daily interest rate in Contract Specifications = -0.08333%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = -30% (annual)

Swap Value (Short), daily interest rate in Contract Specifications = 0.02778%

Please take into account that if we check this information on the trading platform, we will find it on an annual basis. Swap in MetaTrader = 10% (annual)

Daily swap = annual swap / 360
Please note that for this example BTCUSD quotes at 40,000 USD
Please note that 1.00 point in BTCUSD is equal to 1.00 USD

3-days swap not charged

Example with daily swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000) * (-0.0008333) = - 33,332 USD

Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000) * (0,0002778) = 11.11 USD

Example with annual swap:

Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000)* (-30/100/360) = -33,332 USD

Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000)* (10/100/360) = 11.11 USD