Forex Swap Explained: Overnight Rates and the Triple Wednesday Charge
A swap is the cost of holding a position overnight. How it derives from the interest rate differential, when it turns positive, and what swap-free accounts really are.
When you buy EUR/USD you are effectively borrowing dollars and holding euros. Each currency carries its own central bank rate, and the difference is credited or debited every night. That is the swap.
How it is calculated
The base is the rate differential between the two currencies, scaled to your position size and divided by 365. On top of that the broker adds a markup, typically 0.5–1% per year. That markup is why swaps at the same broker are often negative in both directions on the same pair.
The charge lands at the rollover of the trading day, usually around 00:00 server time.
The triple charge
Once a week three days are debited at once. On currency pairs that is the Wednesday-to-Thursday roll. On metals, indices and oil many brokers move the triple charge to Friday — the schedule sits in the contract specification and differs by broker.
When swaps actually matter
For a day trader, not at all: the position closes before midnight. For position trading, swaps become a real cost line. Holding a trade for a month on a pair charging −$8 per lot per day costs roughly $240 — frequently more than spread and commission combined.
Estimate it with the swap calculator.
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Frequently asked questions
Why is Wednesday's swap charged three times?
Spot FX settles on a T+2 basis. A position rolled from Wednesday to Thursday takes a Monday value date, jumping the weekend — so three days are charged at once.
Can a swap be positive?
Yes, if you buy the higher-yielding currency against the lower-yielding one. But the broker adds its own markup in both directions, so a positive swap is usually far smaller than the negative one on the same pair.
What is a swap-free account?
An account with no overnight interest, originally created for clients whose faith prohibits it. Brokers commonly replace it with a flat holding fee after a few days.
- Min. deposit
- $100
- Spread
- from 1.2 pips
- Commission
- $3.5 per lot per side
72% of retail investor accounts lose money when trading CFDs
- Min. deposit
- $100
- Spread
- from 1.1 pips (Standard STP)
- Commission
- $3 per lot per side (Raw ECN)
CFDs are complex instruments with a high risk of losing money