Forex Swap & Rollover Fee Calculator
Calculate overnight swap debits and credits for forex positions based on swap points, duration, and triple-swap Wednesday rules.
The Mechanics of Forex Swap Rates and Rollover Interest
When holding a Forex position past 5:00 PM EST (22:00 UTC), positions are rolled over to the next settlement date. Because Forex trading involves borrowing one currency to purchase another, interest is paid on the borrowed currency and earned on the purchased currency. The net difference between these interest rates, plus broker administration fees, determines whether you receive a swap credit or pay a swap charge.
Mathematical Formulas for Swap Calculation
Swap in Points = Swap Rate in Points × Point Value ($) × Lot Size. Swap in Account Currency = Swap Rate per Lot ($) × Lot Size × Nights. Annual Percentage Swap = (Notional Position Value × Swap Rate %) ÷ 365 × Nights. Effective Nights = Nights + (2 extra nights if holding through Wednesday rollover).
How to Use This Swap and Rollover Calculator
Input trade direction (Long or Short), select your calculation method (points, currency per lot, or annual %), enter your lot volume, duration in nights, and check whether the holding period covers a Triple-Swap Wednesday. The calculator displays normal night charges, triple night charges, and total net monetary impact.
Triple Swap Wednesdays and Weekend Settlement
Spot Forex trades settle on a T+2 business day basis. Positions held open across Wednesday 5:00 PM EST incur or earn three days of swap fees (covering Wednesday, Saturday, and Sunday). Day traders can avoid overnight swaps by closing all positions before the 5:00 PM EST daily rollover cut-off.
Frequently Asked Questions
Why are swap rates different for long and short positions?
Long and short positions flip which currency is borrowed and which is purchased, reversing interest rate differentials.
What is an Islamic swap-free trading account?
Swap-free accounts eliminate interest charges or credits to comply with Sharia law, replacing swap fees with fixed daily administration fees.
Can overnight swaps turn a winning trade into a losing trade?
Yes, holding long-term swing positions against high negative swap rates can accumulate fees that outweigh price gains.
What time of day are forex swap rates applied?
Swaps are debited or credited daily precisely at 5:00 PM EST (New York close).
How do central bank rate hikes affect forex swaps?
When a central bank raises benchmark interest rates, holding long positions in that currency increases swap payout credits.