Overnight swaps
Holding past the rollover
Each currency has its own interest rate. If you hold a trade past the daily rollover (5pm New York time), you earn or pay the difference between the two rates. This is called a swap or rollover.
Earn or pay
If you buy the currency with the higher interest rate, you may earn a small swap each night; if you buy the lower-rate one, you pay it. Many brokers charge three days of swap on Wednesday to cover the weekend. Swaps do not matter for trades closed the same day.
Test yourself
When is the swap charged or paid?
When you hold a trade past the daily rolloverSwap is the overnight interest difference.
What decides whether you earn or pay swap?
The interest-rate difference between the two currenciesBuying the higher-rate currency can earn swap; the opposite pays.
You open and close a trade the same afternoon. Swap is…
Not chargedNo rollover, no swap.
Short interactive lessons and quizzes on real crypto and forex charts. Free to start, no real money involved.
Play Candlr freeMore in Forex Essentials
Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.