What is a swap?
A swap, or rollover, is the interest adjustment applied when you hold a position open past the broker's daily cut-off (often 5pm New York time).
It reflects the difference in interest rates between the two currencies in a pair, or a financing cost for other instruments.
Why it can be positive or negative
If you hold the higher-yielding currency, you may receive a small credit. More often, especially with leverage, the net adjustment is a cost.
Triple swap is typically charged on one day of the week to cover the weekend when markets are closed.
Swaps are separate from spread and commission. The Broker Fee Calculator does not include them, so add them if you hold trades overnight.
Frequently asked questions
Do swap-free (Islamic) accounts avoid this?
Swap-free accounts are designed to avoid interest-based adjustments, usually in exchange for an alternative administration fee. Check the specific account terms.
Where do I find a broker's swap rates?
In the platform's contract specification for each instrument, or on the broker's website. Rates change, so verify before relying on them.