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What Is Swap in Forex and How It Works

Understand swap and overnight financing in forex trading. Learn how swaps are calculated and how they impact your trades.

Updated over 6 months ago

Swap is interest charged or credited for holding positions overnight, reflecting interest rate differentials between currencies or financing costs for CFDs.

  • Positive swap: interest earned

  • Negative swap: interest paid

Swap is applied daily after rollover time (commonly 17:00 New York time). Triple swap day applies once per week for weekend rollover. Swap rates vary by instrument and broker β€” check MT4/MT5 contract specs before holding overnight.

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