How are traders affected by swap charges?

Swap charges are released on a daily basis by the financial institutions which Fortrade works with, and are calculated and determined according to various risk management criteria and market conditions. The swap premium is calculated in the following manner:

Pip Value (depending on trade size) * Swap rate in pips * Number of nights = Swap charge/credit.

👉 Forex Example:

You open a short position (Sell) on EUR/USD for 1 lot with an account based in USD:

1 Lot = 100,000

1 Pip Value = 10 USD

Swap Rate = -3.2839 Points (equivalent to 0.32839 Pips)

Number of Nights = 1

Swap Premium: 10 * -0.32839 * 1 = -3.2839 USD

👉 CFDs Example:

You open a long position (Buy) on Crude oil for 1 lot (1,000 barrels) with an account based in USD:

Swap Rate = -0.3807

1 Cent Value = 10 USD

Number of Nights = 1

Swap Premium: 10 * -0.3807 * 1 = -3.807 USD