Swap

Swap Rate

The Swap is the interest paid or earned for holding a position overnight. Each investment product has an interest rate associated with it, and every trade involves two different interest rates. The Swap can add a significant extra cost or profit to your trade. The trading platform automatically calculates Swaps for you.

22:00 GMT(+1] is considered to be the beginning and the end of a trading day. Any positions which are still open at 22:00 GMT(+1] are subject to rollover. Rollover is the process of the settlement of an open position overnight.

There is no settlement on Saturdays and Sundays when the markets are closed, but banks still calculate interest on any position held over the weekend. For this reason, a 3-day swap applies on Wednesdays or Fridays.

BCR Swap Rate

BCR offers a transparent Swap Rate based on current interest rate. To view BCR Swap Rates, please log in to your MT4 account.

Swap Rate Calculation

The formula used to calculate the swap charge depends on the CFD instrument you are trading.

Forex, Metals, Commodities, Indices: Pip Value * Swap Rate * Trade lots * Number of days held overnight.

For Example: If you BUY 1.00 lot of EURUSD and hold it overnight for one day with a long rollover of 6.11 Points, then the swap charge would be 1.46 AUD (AUDUSD@0.68420] * 6.11 Points * 1.00 * 1 = 8.93 AUD.

For Example: If you SELL 1.00 lot of USDJPY and hold it overnight for one day with a short rollover of -16.88 Points, then the swap charge would be 1.05 AUD (AUDJPY@95.108] * -16.88 Points * 1.00 * 1 = -17.75 AUD.

Shares: Open price * Contract size * Annual Swap Rate / 360 * Trade lots * Number of days held overnight ( * or / ] Fx Rate.

For Example: If you BUY 1.00 lot of AAPL at $188.00 and hold it overnight for one day with annual swap rate of -15%, the charge would be $188 * 100 * -15% / 360 * 1.00 * 1 / 0.68420 = 11.44 AUD.

For Example: If you SELL 1.00 lot of DIS at $88.00 and hold it overnight for one day with annual swap rate of -15%, the charge would be $88 * 100 * -15% / 360 * 1.00 * 1 / 0.68420 = 5.36 AUD.

How are the Swap Rates determined?

The swap rate depends on a range of factors, including the market interest rates of the two currencies, broker fees, short-term/forward market conditions, etc.