This website uses cookies to provide you with the best user experience. By continuing to browse the site you are agreeing to our use of cookies Learn More.

SWAPS

In general terms, a forex swap is an overnight (or rollover) interest charged or credited on the underlying instrument when you decide to keep a position open overnight.

Swaps matter because you might chose to take a long position in a high-yielding currency compared to the currency used to make the purchase in order to prolong the trade and increase the profit on your overnight position. Or close your position before 21.00 GMT (midnight Cyprus Time) in the event the borrowed currency outperforms the purchased currency.

Keep in mind that the swap interest charged or credited to your account to maintain the trade differs across instruments.

Please check our Terms and Conditions regarding general terms and factors affecting the swap’s level. Also please always consult the Company’s platform and the Contracts’ Specifications for the actual swap rates before rolling over any of your positions.

TradeFW calculates and charges Swap from 21.00 GMT (midnight Cyprus Time). From Thursday to Tuesday, for each day of the week that a position is rolled over, Swaps are charged only once. Only on Wednesday, Swaps are charged 3 times.

    Calculation of Swaps:


Swap = Days Lot Size Swap Rate (long or short) Tick Size

Days = Number of days Position is held

Lot Size = Real volume size of the position, which is the volume multiplied by contract size.

Swap Rate = Rollover rate for Long or short position

Tick Size = Minimal symbol price change

 

Examples of Calculation of SWAP:

1. Forex example on USD account:

Relevant information can be found on Contract Specification Page

Type Asset Volume Contract Size Swap Rate Tick Size Swaps in Asset value Conversion rate Swap calculated
sell eurcadvip 0.3 100000 -17 0.00001 -5.1 1.50642 -3.38551

SWAP (short) for one day: 1  * (0.3 * 100000)  * (-17)  * 0.00001 = -5.1 CAD*

* The account is in USD therefore the calculated swaps need to be converted into the account currency

2. Commodity example on USD account:

Type Asset Volume Contract Size Swap Rate Tick Size Swaps in Asset value Conversion rate Swap calculated
buy xagusdsp 4.09 1000 -21.6798 0.001 -88.67

SWAP (Long) for one day: 1  * (4.09  * 1000)  * (-21.6798)  * 0.001 = -88.67 USD*

*The account and asset are noted in the same currency therefore a conversion is not needed.

3. Share CFD example on USD account:

Type Asset Volume Contract Size Swap Rate Tick Size Swaps in Asset value Conversion rate Swap calculated
buy itx.es 65 1 -26.2854 0.001 -1.708551 1.133 -1.93579

SWAP (Long) for one day: 1 * (65 * 1) * (-26.2854) * 0.001 = -1.708551 EUR*

*The asset currency is in EUR therefore the swap amount needs to be converted into the account currency USD

For detailed information check the following sheets:

SWAPS  |  Digits FW points

Welcome Trader,
No current updates.