A swap rate is a rollover interest rate credited or debited from clients’ accounts when a position is held open overnight. The swap rate is credited or debited once for each day of the week, with the exception of Wednesdays, when it is credited or debited 3 times for the weekend.
Enter your account base currency, select the currency pair, enter the account type, the trade size in lots and the leverage.
The equation is as follows:
Swap = (One Point / Exchange Rate) * Trade Size (Lot Size) * Swap Value in Points
Example:
One Point: 0.00001
Account Base Currency: EUR
Currency Pair: EUR/USD
Exchange Rate: 1.0895 (EUR/USD)
Volume in Lots: 5 (One Standard Lot = 100,000 Units)
Short Swap Rate: 0.15
Swap Value = (0.00001 / 1.0895) * (500,000 * 0.15)
Swap Value is €0.69
*If the result is negative your account will be debited whereas if it is positive your account
will be credited.