May 3, 2021
Estimated reading time: < 1 min
In this article
A rollover fee, also known as “swap”, is charged when you keep a position open overnight.
A forex swap is the interest rate differential between the two currencies of the pair you are trading.
It is calculated according to whether your position is long or short.
How to Calculate Swap
For forex, here’s the formula to calculate swap:
Swap = (Pip Value * Swap Rate * Number of Nights) / 10
Rollover Example
Trading 1 lot of EUR/USD (short) with an account denominated in EUR
Pip value: $10
Swap rate: 0.54
Swap fee: (10 * 0.54 * 1) / 10 = $0.54
If this article seems useful to your then please click the like button below. You can also share your valuable feedback or ask questions in the below comment section. Also, subscribe to our newsletter for trading-related updates.
Views: 17
