This section explains swaps .

Are swaps a good thing or a bad thing? That depends entirely on your trading strategy.

Below, you can find examples on how to calculate swaps, knowing the exact price your broker will deduct/add from/to your trading account at 00:00 server time.

It is recommended that you request from your broker to provide you with a list of swaps if they are not visible on the website.

Note that for Gold, Silver and Oil symbols swap calculation is different to the other forex currency pairs and therefore we strongly advise you to contact your broker in order to provide you with the swap calculation formula they use.

Below, we will give examples with symbols/products traded and a way to calculate the swaps.

Swap is also called rollover fee and the respective swap price is added/deducted from your trades if they stay open over night. An overnight swap price is added/deducted from an open order/trade at 00:00 server time, that is when the time at your Market Watch window shows 00:00.

Swap calculation is always refers to the quote currency of a symbol. So, for the EUR/GBP, swap calculation will refer to British Sterling (GBP). For a EUR/USD trade, swap calculation will refer to US Dollars.

Also, swaps for a symbol may result in negative for both BUY and SELL. For example, swaps for BUY 1 lot EUR/USD order maybe $-0.35 (minus 35 cents) and that does not mean that swaps for SELL 1 lot EUR/USD order will be $0.35 (the opposite positive price).

Finally, note that on Wednesday night (00:00 server time), triple swap is applied to open orders/trades.

Brokerage firms may use different formulae to calculate swaps. Please find below the most common ones explained, in terms of mathematic calculations.

Swap Type

Swap = lots traded * contract_size * smallest price fluctuation * Long or Short points

• Note that long is for buy order, short is for sell order and the points are provided from your broker and they are different from broker to broker.
• Lots is the size of the order/trade which you select by placing the volume of the order/trade.
• For standard MT4 trading account the contract_size is set at 100,000.00 units.
• Long or short points: swap long/short points provided from the Brokerage firm.

Since we have provided the formula, let’s begin with our examples.

Example 1

trading account base currency: USD