Forex swaps represent the interest rate differential between the two currencies in a currency pair you trade. The swap value is calculated differently depending on whether your position is long or short. Here's what you need to know about when swap charges are applied:
Calculation and Application Timing:
Swap charges are applied when you hold a position at the daily rollover point.
This rollover occurs at 00:00 MetaTrader server time. The server’s UTC offset differs between winter and summer time, and the exact transition dates vary each year.
In forex trading, this process is commonly referred to as "tomorrow next" or "tom next."
How It Works:
When you hold a position through the daily rollover point (midnight server time), the overnight interest rate is automatically applied to your account. This reflects the cost or benefit of holding a position overnight based on the interest rate differential between the two currencies involved.
Key Points to Remember:
All open positions at 00:00 server time will incur swap charges or credits.
If you close your position before the rollover time, no swap will be applied.
Triple swap charges apply on specific days (Wednesday for most FX pairs) to account for weekends.
For MT4 and MT5, the rollover point is 00:00 MetaTrader server time.
For specific swap rates on individual instruments, you can check the contract specifications in your trading platform. Remember that swap rates can change based on market conditions and interest rate fluctuations.
For account-specific help, sign in to the Client Portal, open Service Hub from the left navigation menu, select Create Ticket, and choose the category and issue that best match your request.