Forex swap rates
Attractive Forex swap rates designed to support efficient and cost-effective trading.
Benefit from competitive Forex swap rates designed to help optimise your trading costs and improve overall efficiency. Our carefully structured swap rates aim to provide traders with cost-effective conditions when holding positions overnight, allowing for better strategy planning and risk management.
With transparent pricing and favourable rates across a wide range of currency pairs, traders can manage long-term positions with greater confidence. Whether you are a short-term trader or prefer extended market exposure, our competitive swap structure helps minimise additional costs while supporting consistent trading performance.
By offering balanced and market-aligned swap rates, we strive to create a trading environment that is both flexible and economical, helping you make the most of global Forex opportunities.
Key points about Forex swap rates
- Swap charges are calculated at 00:00 based on the server or trading platform time.
- Swaps are only applicable to positions that remain open overnight.
- The swap value is based on the interest rate difference between the two currencies in a trading pair.
- Certain Forex pairs may have negative swap rates for both buy (long) and sell (short) positions.
- Swap rates are displayed in points, and platforms such as MT4 and MT5 automatically convert them into your account’s base currency.
- A triple swap is applied on Wednesday night* to account for holding positions over the weekend period.
- Every Forex pair carries its own rollover cost, typically calculated using the standard contract size of one lot (100,000 units).
What are Forex swap rates?
In Forex trading, the net interest gained or paid on a position kept open overnight is known as a swap charge or rollover interest. This cost arises because trading currencies involves borrowing one currency to purchase another.
When a trade remains open beyond the daily rollover time (usually 00:00 server time), interest is calculated based on the central bank interest rates of the two currencies in the pair. For example, when trading EUR/USD, buying the pair means you are effectively borrowing US dollars to purchase euros. In this case, interest is paid on the borrowed US dollars while interest may be earned on the euros held.
The final swap amount depends on the difference between the interest rates of the two currencies. If the interest rate differential is favourable after adjustments, the trader may receive a positive return. If the difference is unfavourable, the trader will incur a cost.
How does a Forex swap work?
When traders open either a long or short position, they agree to settle the transaction on the designated value date, which in the spot market is usually completed within two business days. If the position remains open beyond this period and is rolled over to the following day, the value date is automatically moved forward.
During this process, the equivalent currency amount involved in the trade is effectively borrowed and lent within the interbank market, based on prevailing lending and deposit interest rates. Any associated borrowing costs or interest gains are then reflected in the trader’s account by the broker.
There are generally two possible outcomes:
- The swap amount is either added to or deducted from the trader’s account, while the original trade price remains unchanged.
- The position is automatically reopened at an updated price, with the new value date adjusted according to the applicable swap rate.
Importance of swap charges in Forex trading
Swap charges play a key role for traders who maintain positions over a longer period. This includes swing traders, position traders, hedging investors, those dealing with highly volatile instruments, and traders who keep positions open during weekends or public holidays. Carry traders, in particular, rely on the interest rate difference between two currencies as part of their strategy, making swap rates an essential factor in their decision-making process.
Forex swaps are also important for hedging strategies. For example, if a trader opens a position expecting a certain market movement that has not yet occurred, they may open an additional position in the opposite direction without closing the original trade.
This approach, often referred to as lock-mode hedging, helps manage risk while maintaining market exposure. Competitive swap structures and narrow rate differences can help reduce the cost of holding such positions. Trading platforms like MT4 and MT5 support the use of these hedging techniques.
It is important to understand that swap rates may change regularly due to market conditions, central bank interest rate adjustments, and broker-specific policies. Swap calculations are typically applied at the end of the trading day for positions that remain open after 5:00 p.m. ET. Traders who are unfamiliar with swap costs may encounter unexpected expenses, so regularly reviewing swap rates can help manage trading risks more effectively.
How to Check Swap Rates in MT4 and MT5
To view the latest swap rates on your MT4 or MT5 trading platform, follow these steps:
- Open the Market Watch section
- Right-click within the panel and select Symbols
- Choose the Forex pair you wish to review
- Click Properties (on MT5, select Specification)
- A detailed window will appear displaying key information about the selected pair, including swap rates, stop levels, margin requirements, and other trading conditions
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