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.
Swaps are applied because most financial instruments settle over more than one business day. When a position remains open past the daily market close, it is rolled over to the next trading day.
How do swaps work?
Swaps are applied once per day, when a position is held overnight
The swap amount depends on:
The instrument you are trading
Whether your position is Buy (long) or Sell (short)
The size of your trade (lot size)
When are swaps charged?
Swaps are usually applied at 23:59 server time.
Triple Swap (Weekend Swap)
On Wednesdays, a triple swap is applied.
This accounts for the weekend, as markets are closed on Saturday and Sunday.
If you hold a position open overnight on Wednesday, the swap is charged three times.
Can I see swap rates before trading?
Yes. Swap rates are available:
In the trading platform (MT4/MT5) under Instrument Specifications
Directly in the Market Watch window for each instrument
Swap values may change and are determined by market conditions and liquidity providers.