In this article we’ll cover all things Swap-related:
Swap is the interest that is applied to all positions that are left open overnight for the following trading day. It is credited to or withdrawn from trading accounts at 22:00 GMT+0 each day until the position is closed (according to the following schedule):
|Saturday||Not applied||Not applied|
|Sunday||Not applied||Not applied|
Swap is charged every day, except for the weekends, when trading is not available. That is why on Wednesday, the amount of Swap is charged at triple rate in order to compensate for the following weekend, during which swap is not charged.
Swap can either be long or short depending on whether you open a Buy or a Sell position. As you know, Buy positions are also called long positions, that is why Swap for Buy positions is called Swap long. Same goes Swap for Sell or short positions, which is called Swap short. Swap can either be negative or positive - check our Contract specifications for information on your trading instrument.
So, how do you calculate Swap for the position you are about to open? Read on to learn how.
Swap calculation formula:
Lots x Contract Size x Point Size x Swap Short or Swap Long x Number of Days
Let’s say you’ve got a Mini account and opened a Buy position for 1 lot of EURUSDm on Tuesday at 15:00 server time, and closed it on Thursday at 23:00.
Let’s calculate Swap for our trade. Here’s how to find all the figures you need:
This is the easiest part. Just take a look at your position - 1 lot EURUSDm.
- Contract size
A standard contract size that applies to the majority of Forex trading instruments is 100,000 units of the base currency. In the case of EURUSD, where EUR is the base currency, the contract size is 100,000 EUR.
- Point size
Point size for the majority of Forex trading instruments is 0.0001. EURUSD is no exception to that rule.
- Swap short/ long
Since we have a Buy position, we’ll need the Swap Long rate for calculation. Let’s check our Contract specifications: -0.899.
- Number of days
Our position was held overnight from Tuesday to Wednesday, from Wednesday to Thursday, and from Thursday to Friday. In total that’s 3 days. Each weekday is considered to be a single Swap, while on Wednesday triple Swaps are charged. So in our calculation we’ll charge Swaps for a total of 5 days.
Now that we have all the figures we need, we can put them into the formula:
Swap = Lots x Contract Size x Point Size x Swap Short or Swap Long x Number of Days
Swap = 1 x 100,000 x 0.0001 x (-0.899) x 5 = -44.95 USD
This is the total amount of swap that will be deducted from your account.
You can always refer to our Trader’s calculator to calculate the amount of swap that will be applied to your order.
We have created special Swap-Free accounts for residents of Islamic countries who observe Sharia law. On Swap-Free accounts no Swaps are credited to or withdrawn from the client’s account.
The system identifies which clients are residents of the countries where Islam is the predominant religion, and flags their accounts as Swap-Free.
When clients are found to have abused the Swap-Free status attributed to their accounts, we shall reserve the right to:
- Cancel the Swap-Free status on all of the client's trading accounts.
- Apply swap to the account, covering the entire period during which the client used the swap-free status.
Improper use includes, but is not limited to, situations where a large portion of the transactions on a client's trading account would have been subject to negative swap charges, which were not levied by Exness, in accordance with the Swap-Free nature of the account.
We do not provide Swap-Free ECN accounts. For these accounts, all operations involving the application of Swap are carried out in full. Cent, Mini, and Classic accounts, however, can be Swap-Free.