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What Is a Swap Fee in Forex?

Holding a position open overnight incurs a swap fee, often known as a rollover fee. Learn more about this here.

By Marcel Deer

Edited by Joel Taylor

Updated October 5, 2023

a bunch of dice with different symbols on them

A swap fee in Forex, also known as a rollover fee, is interest that traders pay for maintaining a position until the end of the trading day. If traders maintain their positions at the daily rollover point, which occurs at 00:00 server time (or "tomorrow next"), the swap fee will be applied.
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What You Should Know About a Swap FeeTo calculate the swap fee, you need the current swap fee for the currency pair, your net pip value, and the number of nights you plan to hold your position. 
The formula is pretty simple:
Swap = (pip value) x (swap rate) x (number of nights)/10
» Master the fundamentals with the basic forex terms you should know﻿
Related TermsPip Pips are the smallest value change that represents the spread—whether positive or negative—between the two currencies being traded.
Forex (FX) Short for foreign exchange, this is the exchange of one currency for another at a specific rate.
Spread This is the difference between a forex broker's buying and selling rate.
Lot This transaction amount represents the number of currency units being traded.
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The Importance of Understanding Swap FeesKnowing the swap rate for a currency pair will allow you to calculate the swap fee you’ll be charged if you hold your position overnight. You will be better able to assess the costs of keeping your position open against any prospective risks and potential rewards.
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT buy/sell ownership of the instrument itself
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.52% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Read full risk warning.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

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