Swap Calculator

What Is a Swap Fee?

A swap fee, also called rollover, is the interest charged or earned when you hold a forex position overnight. Because forex trades involve borrowing one currency to buy another, the interest rate difference between the two currencies determines whether you pay or receive swap. The fee is applied at 5 PM EST (New York market close).

Swap is quoted in points by most brokers, where 1 point = 0.1 pip. A swap rate of -5.2 points on EUR/USD means you pay $5.20 per standard lot per night (point value = $1.00 for EUR/USD). A positive swap rate means you earn interest — common when buying high-yield currencies against low-yield ones.

For 1 lot of EUR/USD with -5.2 swap points: 1 × -5.2 × $1.00 = -$5.20 per night. Over 30 days: -$156.00. This is in addition to spread costs and any commissions.

Triple Swap Wednesday

Forex trades settle on a T+2 basis (two business days after the trade). A trade opened Wednesday settles Friday, and holding it overnight means the position rolls over Saturday and Sunday as well. Most brokers charge triple swap on Wednesday to account for the full weekend. Some brokers apply triple swap on Friday instead — check your broker's policy.

For a position with -$5.20 daily swap: Monday = -$5.20, Tuesday = -$5.20, Wednesday = -$15.60, Thursday = -$5.20, Friday = -$5.20. Total weekly cost = -$36.40 (7 × standard daily rate).

When Swap Matters

Swap fees are negligible for day traders who close positions before 5 PM EST. But for swing traders holding trades for days or weeks, swap can significantly impact profitability. A position held for 30 days on EUR/USD with -5.2 swap points costs $156 — more than the spread cost for several round-turns.

Positive swap strategies (carry trades) involve buying high-interest currencies and selling low-interest ones to earn daily interest. Use the carry trade calculator to evaluate interest rate differential returns over longer holding periods.

Swap-Free Accounts

Islamic (swap-free) accounts eliminate overnight interest charges to comply with Sharia law. Instead, brokers may charge a fixed administration fee or widen spreads. If you hold positions for more than a few days, compare the total cost of a swap-free account vs a standard account with swap to determine which is cheaper.

Frequently Asked Questions

What is a swap fee in forex?

A swap fee (also called rollover) is the interest paid or earned for holding a forex position overnight past 5 PM EST. It is charged because forex trades involve borrowing one currency to buy another, and each currency has its own interest rate. Negative swap means you pay; positive means you earn.

How is swap calculated in forex?

Swap = Lots × Swap Points × Point Value, where 1 point = 0.1 pip. For EUR/USD with -5.2 swap points and 1 lot: -5.2 × $1.00 = -$5.20 per night. For USD/JPY with +3.0 points and 0.5 lot: +3.0 × ¥100 × 0.5 = +¥150 per night.

When is triple swap charged?

Most brokers charge triple swap on Wednesday to account for the weekend (Saturday and Sunday) when markets are closed. Some brokers charge triple on Friday instead. The swap cost for holding over Wednesday night covers Wednesday + Saturday + Sunday.

Which forex pairs have positive swap?

Positive swap (earning interest) occurs when you buy a currency with a higher interest rate and sell one with a lower rate. Common positive swap scenarios: long AUD/JPY, long NZD/JPY, or short USD/TRY. Rates change with central bank policy, so check your broker's current swap rates.