Learn Trading Costs Swap

Swap / Rollover Fees

Swap (also called rollover) is an overnight financing cost or credit applied when you keep a leveraged forex position open past the broker’s daily cutoff. It exists because currencies have different interest rates and positions are rolled forward to avoid physical settlement.

Risk warning: This content is for educational purposes only and not financial advice. Forex trading involves risk, and you can lose money.

Overnight fees explained

Swap (rollover) is the overnight financing cost or credit for holding a trade past the daily cutoff.

  • Can be: cost or credit (pair + direction)
  • Triple swap: usually Wednesday
  • Matters most: swing trades & weekend holds
Swap can be a cost or a small credit — it depends on the pair, direction, and current rates.

Swap / rollover explained

  • Why swap exists: each currency has its own interest rate, so holding one currency vs another creates an interest-rate difference.
  • Why you’re charged/credited: brokers roll your position forward at the daily cutoff instead of settling the trade physically (rollover).
  • It can be positive or negative: depending on the pair and whether you’re buying or selling.
  • Reality check: brokers add their own pricing/markup, so “high interest” doesn’t always mean you receive a credit.

Triple swap (usually Wednesday)

  • Most FX pairs: triple swap is applied when you hold a position over the Wednesday rollover to account for the weekend.
  • Why Wednesday: spot FX uses a T+2 settlement convention, and the rollover schedule needs to bridge non-trading weekend days.
  • Cutoff time: many brokers process rollover around 5pm New York time (check your broker/platform).
  • Note: some CFDs may use a different triple-swap day (often Friday), so always confirm the symbol’s swap schedule in your platform.

Can you earn money on swap?

  • Yes (sometimes): if the swap is positive for your direction, you can receive a small daily credit while holding the trade overnight.
  • This is the idea behind “carry”: holding a higher-yield currency vs a lower-yield one — but it’s not free money.
  • Main risk: price moves against you can wipe out months of swap credits quickly.
  • Beginner rule: treat positive swap as a bonus, not the reason to enter a trade.

When swap matters most

  • Swing trades & holds: if you keep trades open for days/weeks, swap becomes a real part of your result.
  • High leverage: swap + floating loss can pressure your margin — see leverage & margin.
  • Wednesday holdings: triple swap can surprise beginners if they didn’t plan for it.

Beginner tips

  • Check swap rates per symbol inside your platform (buy vs sell can differ).
  • Know your broker’s rollover time (often ~5pm New York) before holding overnight.
  • If costs matter a lot for your style, compare with spreads and commission too.
  • If you want “no swap”, read the conditions on Islamic swap-free accounts first.

Related lessons

Swap / Rollover Fees Explained