Swap is a fee charged when the client holds a position overnight. It is calculated daily between 5:00 AM – 6:00 AM (GMT+7).
Swap Calculation Rules
- Forex Pairs: Swap rates are calculated 3 times on Wednesdays and not applied on Saturdays and Sundays.
- Swap Rates: Depend on bank interest rates and currency exchange rates.
- Finding Swap Rate: Available in the Market Watch window in the trading program. Right-click, then go to Specification >> SWAP long vs. SWAP short.
Swap Calculation Formula
- Swap for Buy (Long): Pip Value×Swap Long
- Swap for Sell (Short): Pip Value×Swap Short
Example Calculations
1. Example 1: Buy Position
- Currency Pair Pip Value = $0.5
- Swap Long = -8.9, Swap Short = 5.09
- Holding Period: Monday – Thursday
1 Night Swap Fee Calculation:
(0.5×−8.9) = −$4.45 per night
Total Swap from Monday to Thursday:
- Monday, Tuesday, Thursday: −$4.45 × 3 = −$13.35
- Wednesday (3x Swap): −$4.45 × 3 = −$13.35
- Total Swap Loss: −$26.7 (additional investor expense)
2. Example 2: Sell Position
- Currency Pair Pip Value = $0.5
- Swap Long = -8.9, Swap Short = 5.09
- Holding Period: Monday – Thursday
1 Night Swap Fee Calculation:
(0.5×5.09) = +$2.54 per night
Total Swap from Monday to Thursday:
- Monday, Tuesday, Thursday: +$2.54 × 3 = +$7.62
- Wednesday (3x Swap): +$2.54 × 3 = +$7.62
- Total Swap Gain: +$15.24
