Swap: did you realise holding a position overnight costs money?
Many first statements show small nightly charges and traders don't recognise them. Swap (or rollover) is the interest adjustment for keeping a position open past the daily rollover, and it can be a credit or a charge depending on the pair and direction.
Share:
- when you first noticed swap on your statement
- whether you now check the swap before opening a position
- any pair where swap surprised you in either direction
The mechanics are in spread, commission and swap.
Background: The real cost of a forex trade: spread, commission and swap
Every trade has costs, and they are easy to underestimate. Here is how to add up the spread, commission and overnight swap on a position.
What is a spread in forex?
The difference between the bid (sell) and ask (buy) price. You pay it every time you open a trade, and it widens when the market is less liquid.
Is a raw spread account cheaper?
Not automatically. Add the spread and the round-trip commission together and compare the total with a spread-only account's typical spread on the pairs you trade.
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