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NextTrade

Costs & risk

Swap

A swap is the interest charged or paid for keeping a position open overnight, also known as rollover. It depends on the interest rate difference between the two currencies of a pair, or on the instrument's financing rate, and each instrument's swap rates are shown in the platform.

Also called: rollover, overnight fee, overnight financing, swap fee, triple swap

Hypothetical example

Hypothetically, the swap on a 1-lot long position is −$5 a night. Kept open for 4 nights, the position pays $20 in swaps, whether the trade itself gains or loses.

Related terms

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