A swap/rollover fee is charged when you keep a position open overnight. A forex swap is the interest rate differential between the two currencies of the pair you are trading, and it is calculated according to whether your position is long or short. The FxPro Swap Calculator can be used to determine what your swap fee will be for holding a trade open overnight. To calculate swap fee, select the instrument you are trading, your account currency and trade size, and click ‘Calculate’.
For forex, the Swap Calculator works as follows:
Swap = (Pip Value * Swap Rate * Number of Nights) / 10
- Trading 1 lot of EUR/USD (short) with an account denominated in EUR
- 1 lot = 100,000, Pip value = $10, Swap rate = 0.54, Number of nights = 1
- Swap fee: (10 * 0.54 * 1) / 10 = $0.54
For spot energies, the Swap Calculator works as follows:
Swap = Lot Size * Swap Rate * Number of Nights
- Trading 1 lot (1,000 barrels) of Brent with an account denominated in USD
- Swap rate = -18.84, Number of nights = 1
- Swap fee: 1 * -18.84 * 1 = $-18.84
Note: FxPro calculates swap once for each day of the week that a position is rolled over, while on Friday night swap is charged 3 times to account for the weekend.
The FxPro Swap Calculator is also available for mobile devices as part of the FxPro Tools app. Download the app today, on iOS and Android, to have access to all the trading calculators you need, whenever and wherever you need them.