Carry and swap: does anyone hold positions for the interest?
Policy rates among the major central banks now range from 0% at the Swiss National Bank to 4.35% at the Reserve Bank of Australia (as of mid-September 2026), so the swap on some pairs is large enough to matter.
Questions for anyone who pays attention to it:
- Do you choose trades or holding periods partly because of swap?
- How close is your broker's swap to the actual rate difference? Brokers add a markup, and on some pairs both long and short swaps are negative.
- Has a sudden move in the exchange rate ever wiped out months of carry for you?
The carry trade guide explains why these trades can unwind quickly. Please share experiences rather than suggestions to buy particular pairs.
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An update on the rate picture since the thread started, and a note on how swaps are calculated.
The spread between rates has shifted this month: the Fed raised its target range to 3.75%–4.00% (report), the ECB's deposit rate is 2.50%, the Bank of Japan's rate is 1.25% after its 18 September increase and the Swiss National Bank's is 0%.
Brokers don't pass that gap on in full. The swap you see is roughly the interest rate difference between the two currencies, adjusted by the broker's markup, which is why a pair with a small positive rate difference can show negative swaps in both directions. Swaps are also usually charged three times on one weekday, often Wednesday, to cover the weekend.
Before holding for carry, it's worth calculating the swap earned per month against a normal week's price range. A single move of one or two days' range can cancel several months of carry. Background: carry trade explained.
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