Swap is the fee charged when the client holds a position overnight.
It will be calculated every day from 5:00 AM to 6:00 AM in Thailand time.
For common forex pairs, swap rates are calculated 3 times on Wednesdays and not calculated on Saturdays and Sundays. Swap rates are subject to change based on bank interest rates and currency exchange rates.
Calculating
Swap for Buy: pip value * swap long
Swap for Buy: pip value * swap short
The swap rate can be found on the trade program in the Market Watch window by clicking right and then going to Specification >>. SWAP long versus SWAP short.
Example: BUY
Calculating a Currency Pair If the pip value = $0.5
Swap Long = – 8.9, Swap Short = 5.09
Hold positions from Monday nights to Thursdays.
1 Night Swap Fee = (0.5 x -8.9) = -$4.45 per night
So Monday, Tuesday, and Thursday will lose = -$4.45 * 3 days = -$13.35
and Wednesday 3x lose = -$4.45 * 3 = -$13.35
Total Swap Monday to Thursday = -$26.7 as additional investor expense.
Example: Sell
Calculating a Currency Pair If the pip Value = $0.5
Swap Long = – 8.9, Swap Short = 5.09
Hold positions from Monday nights to Thursdays.
1 Night Swap Fee = (0.5 x 5.09) = $2.54 per night, which is positive. It means earning instead of having to lose.
So Monday, Tuesday, and Thursday = $2.54 * 3 days = $7.62
and 3x = $2.54 * 3 = $7.62 on Wednesday
As an additional investor expense, the total swap from Monday to Thursday is $15.24.
