Module 2: Trading Fundamentals
Swap (Overnight Financing)
5 min read
Positions held past the daily rollover may earn or pay a swap based on interest-rate differences.
Why swaps exist
Holding a currency position overnight is economically similar to borrowing one currency and lending another. The swap reflects the interest-rate difference between them, plus the broker's markup.
Swaps can be positive or negative. Many brokers charge a triple swap on one weekday to cover the weekend.
Swap-free accounts
Some brokers offer swap-free (often called Islamic) accounts, which may use other fees instead. Read the terms carefully.
Key takeaways
- Swap is charged or paid on overnight positions.
- It reflects interest-rate differences plus markup.
- Check swap rates if you hold trades for days.
Educational content only, not financial advice. Trading forex and CFDs involves significant risk of loss.