Swap is an interest applied each day to orders open overnight until the order is closed. Depending on the day and trading instrument, swap can be applied as standard, triple or not applied at all.
Exness offers swap-free accounts in certain circumstances, as well as automatically to Exness accounts registered in Islamic countries. Follow the link to find out all about swap-free Exness accounts.
The rate of swap varies widely as each trading instrument determines these rates in a number of ways. For example, all stock and most cryptocurrency instruments are swap-free, while swap is applied triple on Wednesdays for most forex and metal (Commodities) instruments, and on Fridays for energy (Commodities) and some cryptocurrency instruments.
Factors that impact swap include for a particular instrument include:
- Interest rates of central banks
- Currency pair exchange rate (when applicable)
- Order type (short for sell or long for buy)
- Broker's commission
Broker's commission is subject to change based on market conditions and the risk management policy exercised for particular trading instruments.
Standard swap schedule
This is the standard schedule for most instruments:
|Saturday||Not applied||Not applied||Not applied|
|Sunday||Not applied||Not applied||Not applied|
Daily swap follows daylight savings time, changing between 21:00 GMT during summer trading hours and 22:00 GMT during winter trading hours. Confirm the schedule above for which hour is currently reflected.
Triple swap is applied when the settlement date of the instrument lags behind closing the order. Since most forex trading instruments take up to 2 working days to settle, for example, any order closed after Wednesday at 10pm (GMT+0) will only settle the following Monday. Therefore, triple swap is applied to account for the 3 days the order must be maintained overnight.
For Energies (under Commodities), there is no triple swap. There is a single overnight charge for each day of the week.
How to calculate swap
Learn how to calculate the swap that may be charged for your order below, or use the investment calculator to calculate the swap for you.
Swap = Swap long/short × number of days × pip value
Pip value = number of lots x contract size x pip size
Let’s use the above calculation in an example to illustrate how the it works:
You opened a buy (long) order of 1 lot EURUSDm with a Standard account on Tuesday at 15:00, then closed that order on Thursday at 23:00.
First we breakdown the calculation:
- Lots = 1
- Contract size = 100 000 EUR
- Pip size = 0.0001 (for majority of the forex instruments)
- Pip value = 1 x 100 000 x 0.0001 = 10
- Swap rate = -0.86852 pips (for demonstration purposes; not based on live swap rate data)
Number of days: 5
- Standard swap on Tuesday at 10:00pm = 1
- Triple swap on Wednesday at 10:00pm = 3
- Standard swap on Thursday at 10:00pm = 1
Swap = -0.86852 x 5 x 10 = -43.42 USD
This charge is negative, and is deducted from your trading account balance. Had it been positive, no swap charge would be applied.
Remember, the investment calculator can complete these calculations for you based on live swap rate data.
To learn about swap calculation for Energies, check out the linked article.