Swap (rollover): meaning in forex and gold trading
A swap is the overnight financing charge or credit applied to a position held past the broker's daily rollover time.
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Swap (rollover): A swap is the overnight financing charge or credit applied to a position held past the broker's daily rollover time.
Why swaps exist
When you hold a currency position overnight you are effectively borrowing one currency to hold another. The swap reflects the interest rate differential between the two currencies, adjusted by the broker's own markup. On gold, it reflects dollar financing costs. Swaps are usually quoted in points or money per lot, separately for long and short positions.
Rollover and the triple swap
Swaps are applied at the daily rollover, often 5pm New York time. Because forex trades settle two business days later, many brokers charge three days of swap on Wednesday night to cover the weekend. Some apply the triple day on a different weekday, so check your broker's table.
When swaps matter
For intraday trades swaps do not apply. For swing trades held for days or weeks they can add up, and a negative swap can turn a small winning trade into a loss. Islamic or swap free accounts replace swaps with other fees.
Worked example
Your broker lists a swap of −6.50 dollars per lot per night for long EUR/USD. Holding 0.40 lots for five nights including a Wednesday costs 0.40 × 6.50 × 7 = 18.20 dollars. The swap calculator does this for you.
Common mistakes
- Ignoring swaps on trades held for weeks.
- Forgetting the triple swap night.
If you follow trade signals, for example the gold signals or EUR/USD signals, understanding this term helps you size and manage each trade yourself. The free Forexuro Telegram channel shares daily market updates where these ideas are used in practice.
Related terms
Tools and guides
Frequently asked questions
Why is my swap negative on both sides?
Brokers add a markup, so both long and short swaps can be negative, especially when rates are close.
When is the triple swap charged?
Often on Wednesday night for forex, but it depends on the broker and instrument.
Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.