What Are Swap Fees?
Swap fees, also known as rollover fees, are charges applied when you hold a trading position overnight. These fees don’t apply to trades that are opened and closed on the same day. Depending on whether your position is long (buy) or short (sell), the swap can either be credited or debited to your account. All open positions are automatically rolled over to the next trading day, except from positions held overnight on Wednesdays for all CFDs, which incur a 3-day swap to cover the weekend. The swap fee is calculated using the formula:
Swap = Lots × Contract Size × Point Size × Swap Rate
Swap Fee Examples
Below are some examples of how this formula can be used: XAUUSD - 2 Lots SELL Lots x Contract Size x Point Size x Swap Rate 2 x 100 x 0.01 x -144.05 = -288.10 USD AAPL.OQ - 5 lots BUY Lots x Contract Size x Point Size x Swap Rate 5 x 1 x 0.01 x -42 = -2.10 USD USDJPY - 1 Lot BUY Lots x Contract Size x Point Size x Swap Rate 1 x 100,000 x 0.001 x -63.92 = -6,392 JPY Keep in mind that bank holidays can affect the number of days a position is rolled forward, so it’s good to keep an eye on the trading calendar.
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