A SHORT SWAP occurs when a Sell POSITION is left open overnight.

The amount earned or charged will differ depending on the instrument you trade.

Short Swap Calculation:

Equation: ONE POINT X TRADE SIZE X POINT SWAP SHORTS

Example: EURGBP: 0.00001 X 100000 X 0.25 = $0.25.

This means that if you retain 1 lot overnight on a sell position on EURGBP, you would earn $0.25.

A LONG SWAP occurs when a BUY POSITION is left open overnight.

The amount earned or charged will differ depending on the instrument you trade.

Long Swap Calculation:

Equation: ONE POINT X TRADE SIZE X POINT SWAP SHORTS

Example: EURGBP: 0.00001 X 100000 X 2.8 = $2.80.

This suggests that maintaining 1 lot overnight on a Sell position on EURGBP will cost you $2.80.