IC Markets
Written byAbir KhanWriter
Market analysis byTanbir Habib RiyadCo-Founder & Trader
Fact-checked & QC byJowel RanaFact-Checker & QC
Edited byRanjan NiskrityChief EditorThis tool is for education and planning only and is not financial advice. Forex and CFD trading carries a high risk of losing money rapidly due to leverage. Check your broker's own contract specifications, fees and margin rules before you trade.
What forex swap is and why you pay it
A spot forex trade settles two business days after it is opened. Brokers do not settle retail positions; instead, at the daily rollover, usually 5 pm New York time, they roll each open position forward to the next value date. The swap is the interest adjustment for that roll.
It reflects the difference between the two currencies' interest rates. Holding the currency with the higher rate against the lower one can earn a small credit; the opposite position pays. Brokers add a markup on both sides, which is why many positions pay swap in both directions and why the same pair can have very different swap rates at different brokers.
Swap matters little for day traders who close before the rollover. For swing and position traders holding for weeks, it can become a larger cost than the spread.
How swap is calculated
Most MetaTrader brokers quote swap in points per standard lot. The calculator converts that into money:
| Step | Formula | EUR/USD example |
|---|---|---|
| Point value per lot | Contract size × point size | 100,000 × 0.00001 = $1 |
| Swap per night | Lots × swap points × point value | 2 × (−6.5) × $1 = −$13 |
| Quote not in USD | Convert at the current rate | USD/JPY: 100,000 × 0.001 = ¥100 ≈ $0.67 per point at 150 |
| Wednesday | Three nights charged | −$13 × 3 = −$39 |
Some brokers quote swap as a money amount per lot or as an annual percentage. Switch the calculator to USD per lot if your broker shows swap that way.
Why swap is tripled on Wednesday
Settlement skips the weekend
A position rolled on Wednesday moves its value date from Friday to Monday, across Saturday and Sunday, so three days of interest apply.
Metals usually follow forex
Gold and silver normally take the triple charge on Wednesday too.
Indices and commodities can differ
Some brokers apply the triple charge on Friday for index and energy CFDs. Check the contract specifications.
Holidays shift it
Bank holidays in the settlement window can move extra nights to another day. See the holiday calendar.
Swap-free (Islamic) accounts
Swap-free accounts remove the overnight interest charge so that traders can follow Islamic finance principles, which prohibit interest (riba). Many brokers popular in the Gulf, Pakistan, Bangladesh, Malaysia and Indonesia offer them.
Removing swap does not always mean cost-free. Many brokers charge a fixed administration fee after a set number of nights, widen spreads on swap-free accounts or exclude certain pairs. Read the terms and compare the total cost over your usual holding period.
Compare brokers that offer swap-free accounts on our Asian forex brokers page.
Worked example: a two-week swing trade
- The position
Farhan buys 1 lot of GBP/JPY and plans to hold for two weeks, ten trading nights including two Wednesdays.
- The swap rate
His broker shows a long swap of +12 points. At USD/JPY 150, one point on one lot is worth about $0.67.
- Nights charged
Ten nights plus two extra for the Wednesdays: 14 nights of swap.
- The result
1 × 12 × $0.67 × 14 ≈ +$112 credited, before any change in the broker's swap rates.
Swap turned a cost into a small income on this trade. On the short side, the same position would have paid swap every night, so direction matters for longer holds.
Swap mistakes
Over weeks, swap can exceed the spread many times over.
One Wednesday adds two extra nights; a three-week hold has three of them.
Brokers change swap rates when interest rates or their own costs change.
A carry trade earning swap can lose far more on price when risk sentiment turns.
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Forex Swap Calculator FAQs
How do I calculate forex swap?
Multiply the lot size by the swap in points and by the value of one point per lot. For EUR/USD, one point on a standard lot is $1, so 2 lots at −6.5 points cost $13 a night.
What time is the forex rollover?
Usually 5 pm New York time. Positions open at that moment are charged or credited the swap.
Why is swap tripled on Wednesday?
A position rolled on Wednesday settles on Monday instead of Friday, so it covers the weekend. Brokers usually charge three nights of swap that day.
Can swap be positive?
Yes. Buying a currency with a higher interest rate against a lower-rate one can earn a small daily credit, although broker markups often make both sides negative.
Do day traders pay swap?
No, if they close positions before the daily rollover.
Are Islamic accounts completely free of overnight charges?
Not always. Some brokers charge a fixed fee after a number of nights or widen spreads instead. Check the account terms.
Sources: BIS Triennial Survey 2025: FX spot and swaps, ExchangeRate-API (conversion rates).