Swap Rates (rollover charges): Forex, Commodity & Index CFD’s
A swap rate or rollover charge is defined as the interest applied (earned/added or deducted/paid) for holding a position open overnight. Each currency has an interest rate associated. Interest earned from rollover is known as ‘positive roll’. Interest paid on rollover is known as ‘negative roll’. Titan FX constantly reviews our swap rates and those of our competitors to ensure we are best in market.
All traders should be aware of swap rates on the instruments they are trading, especially traders who hold open positions beyond the end of the trading day. Several trading strategies such as ‘Carry’ trading actually make use of rollover to profit from the interest rate difference between currencies.
- Forex Swap/Rollover charges are determined by the overnight interest rate differential between the two currencies involved in the pair and whether the position is a buy ‘long’ or sell ‘short’.
- Index CFD Swaps relate to the interest rate of the base currency of the associated index (eg. GBP for FTSE100).
- Commodity CFD (Energy and Precious Metals) Swaps are a composite of different factors that relate to the holding cost of the commodity.
Swap rates can introduce complexity to your trading strategy. Keep the following in mind:
- Swaps are applied to your trading account only when positions kept are kept open until the next trading day.
- Swaps are applied when the rollover occurs at the end of day, which is 00:00 server time.
- Some instruments may have negative swap rates on both sides, both ‘long’ and ‘short’.
- Swap rates are calculated in points, MetaTrader 4 converts them automatically into the base currency of the account.
- Each instrument has its own swap charge.
- Swap is measured on a standard size of 1.0 standard lots (100,000 base units for forex pairs, check in MT4 for other instrument lot sizes).
- Swaps are calculated and applied every trading night. To compensate for the market being closed on the weekend, swaps are charged at triple the rate on Wednesdays in forex and metals and triple the rate on Mondays in energy (oil and gas) and CFDs.
View the swap rates from within your MetaTrader 4 trading terminal by right-clicking on any instrument in the ‘Market Watch’ section, then click on the ‘Specification’ option in the menu.
Scroll down in the Contract Specification window to see the Swap details.
For convenience, a regularly updated swap table is published below. Please note that although every effort is made to keep this table current, you should always check in MT4 for the definitive swap rate. Swap rates are quoted in points.
Titan FX Swap Rates