What are the Swap Short and Long Fees?

A swap:

The interest that you either earn or pay for a trade that you have kept open overnight.

Swap short is when a “short” position is kept open overnight.

The swap rate differs for each symbol since it is based on the difference between the interest rates of the central banks of both currencies.

You can calculate the “Swap short fee” using this formula:

One Point X Trade Size X Swap Short (in Points)

(One point, multiplied by the Trade Size multiplied by the Swap Short Fee (in points))

Example:

One Point = 0.00001

GBPUSD: 0.00001*100,000*4.5= $4.50.

This means you would earn $4.50 for keeping 1 lot of GBPUSD overnight.

One Point = 0.00001 in GBPUSD (The last digit).

Trade Size:

Lots * 100,000(Contract Size) = 100,000

Swap Short in Points = -4.5 on a Sell position on GBPUSD.

Mobile app:

You need to go to “Symbol properties” window on the mobile app.

Desktop:

You just need to right-click on a pair on the Market Watch window and select “Specification”.

Please note that on Wednesday the swap is 3x as its charged for the coming weekend.

Swap Long is when a “Long” position is kept open overnight.

The swap rate differs for each symbol since it is based on the difference between the interest rates of the central banks of both currencies.

You can calculate the “Swap Long fee” using this formula:

One Point X Trade Size X Swap Long (in Points)

(One point, multiplied by the Trade Size multiplied by the Swap Long Fee (in points))