A swap, also known as a rollover, is the interest charged or earned for holding a trading position overnight. It reflects the cost of borrowing or lending the asset involved in your trade and is automatically applied to open positions that remain open past the daily market close.
A swap represents the overnight interest applied to open trading positions.
How Does a Swap Work?
When you open a leveraged trade, you are effectively borrowing funds to hold that position. Depending on the instrument you are trading and whether you are buying or selling, you may either:
Pay a swap fee (negative swap), or
Receive a swap credit (positive swap)
Swap values are determined by several factors, including:
The interest rate differential between two currencies (for Forex trades)
The borrowing cost of the underlying asset (for commodities, indices, or cryptocurrencies)
Your position size and trade direction
Swaps are applied automatically at the daily rollover time, typically at 00:00 server time.
Swap charges or credits depend on the instrument, position direction, and market interest rates.
Positive vs. Negative Swap
Positive vs. Negative Swap
A positive swap means you earn interest for holding the position overnight.
A negative swap means you pay interest to hold the position overnight.
Whether a swap is positive or negative depends on market interest rates and the direction of your trade. Swap rates can change over time as market conditions evolve.
Why Are Swaps Tripled on Certain Days?
Why Are Swaps Tripled on Certain Days?
To account for weekend rollover, swap charges or credits are tripled on specific days:
Forex & Metals: Swaps are typically tripled on Wednesday
Indices & other assets: Swaps may be tripled on Fridays (varies by asset and liquidity provider)
Although markets are closed over the weekend, positions remain exposed to interest and price movements. The triple swap ensures that weekend holding costs are accurately reflected.
Triple swaps account for holding positions over the weekend.
Where Can I See Swap Rates?
You can view swap rates directly in your MT4 or MT5 trading platform by:
Opening Market Watch
Right-clicking on an instrument
Selecting Specification
Swap rates are shown separately for long (buy) and short (sell) positions and may change based on market conditions.
Swap rates are displayed in the instrument specifications in MT4/MT5.
Important Things to Keep in Mind
Important Things to Keep in Mind
Swap rates vary depending on the instrument and market conditions.
Swap charges or credits are applied automatically.
Holding trades long-term may increase total swap costs.
Some accounts or instruments may have different swap conditions.
Understanding swaps is especially important for traders who hold positions overnight or for multiple days.
If you have questions about swap rates, rollover timing, or how swaps affect your trades, our support team is happy to assist. Reach out via live chat or email at [email protected] - we’re here to support your trading journey.
Related Articles
What is Forex Currency Swap? — Learn more about currency swaps and how they work on the Blueberry Academy.
https://blueberrymarkets.com/academy/what-is-forex-currency-swap/