A swap (also known as overnight financing or rollover) is the interest that is paid or earned for holding a trading position overnight.

🖥️ How to Check Swap Rates on MT4 / MT5

You can check the current swap rates directly on your trading platform:

1. Open Market Watch

2. Right-click on the symbol you want to check

3. Select “Specification”

4. View the Swap Long and Swap Short values

These show the overnight swap rate for Buy and Sell positions.

🧮 How is Swap Calculated?

Swap can be calculated using either Points or Percentage, depending on the instrument.

📌 1️⃣ Swap in Points

When swap is quoted in points, the formula is:

Swap = Lot Size × Swap Value × Number of Days

Where:

• Lot Size = Position size (in lots)

• Swap Value = Swap rate shown in Specification

• Number of Days = Total rollover days charged

  
  

📌 2️⃣ Swap in Percentage

When swap is quoted as a percentage, the formula is:

Swap = Lot Size × End-of-Day (EOD) Price × Swap Value ÷ 100 ÷ 360 × Number of Days

Where:

• Lot Size = Position size (in lots)

• EOD Price = End-of-day market price

• Swap Value = Annual percentage rate

• 360 = Standard financial year convention

• Number of Days = Total rollover days charged

  
  

📅 Important Notes

• Swap may be positive or negative depending on position direction.

• A triple swap may apply on certain days (commonly Wednesday for Forex).

• Swap rates can change based on market conditions.

  
  

⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading involves risk.