Lesson 7 of 104:102 Sources
Swap / rollover
Recorded. Publishing soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
A position held past the end of the trading day is rolled to the next settlement date, and a swap (rollover) is charged or credited.
- Most dealers base it on the interest-rate differential between the two currencies, plus their own markup.
- There are separate values for buys (swap long) and sells (swap short); both can be negative.
- Illustration: $100,000 with a 3% annual differential ≈ $8.20 per night before markup.
- One day a week the swap is charged three times (set by the broker in the symbol specification).
- Check the swap before holding overnight and add it to spread and commission.
Quick check
Three questions. Pick an answer to see why.
1.What is the swap (rollover) mainly based on?
2.$100,000 position, 3% annual differential against you. Approximate cost per night before markup?
3.Where do you find swap long/short and the triple-swap day?
Sources
Every fact in this lesson is backed by the sources below.
- 1.NFA — Trading in the Retail Off-Exchange Foreign Currency Market: What Investors Need to KnowRollover definition; most dealers charge a rollover fee based on the interest-rate differential
- 2.MetaQuotes — MetaTrader 5 Help: Quotes / symbol specificationSwap long / swap short, swap type and the 3-day (triple) swap day are symbol parameters set by the broker
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