JoymistaWhat Is a Swap in Forex?
A swap is an amount added to or taken from your account when you hold a trade overnight, tied to the interest-rate gap between the two currencies and your broker’s terms.
Explained
A swap can be positive or negative, and differs between a buy and a sell on the same pair. Many brokers charge three days of swap on one weekday to cover the weekend; the values are in your broker’s contract specification.
Example
Example with made-up numbersIf your broker’s buy swap is −5 dollars per lot per night, holding one lot over 4 ordinary nights costs 20 dollars.
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Open in JoymistaEducational content, not investment advice.