Swap explained with numbers: why Wednesday night costs three times more
A lot of traders only notice swap when a position held for a couple of weeks is down more than the price move explains. Here is how it works in plain numbers.
What swap is
When you hold a leveraged position past the daily rollover, you pay or receive the interest rate difference between the two currencies, plus a markup. On gold and indices it is a financing charge on the position value.
Where to find it
In MT4 or MT5, open Market Watch, right click the symbol and choose Specification. Check swap long, swap short, the swap type and which day is charged triple.
Why Wednesday is usually triple
FX spot settles two business days later. A position held through Wednesday's rollover settles over the weekend, so it is charged for Saturday and Sunday too. Some instruments use Friday instead, so always check.
Worked example
Say EURUSD swap long is -6 points and you hold 1.00 lot. One point on 1 lot is about 1 USD, so:
A normal night costs about 6 USD.
Wednesday night costs about 18 USD.
A full week costs about 42 USD.
For a scalper it does not matter. For a swing trader holding 2 lots for a month, it can be several hundred dollars, a real part of the result.
Tips
Add expected swap to your plan for anything you hold more than a few days.
Positive swap exists on some pairs and directions, but it changes when interest rates change.
On swap free accounts, ask how holding costs are handled, since some charge a fixed fee instead.
Do you factor swap into your swing trades, or only look at the spread?
Great breakdown and clear explanation! Swap is definitely one of those hidden costs that catches a lot of newer swing traders off guard.
A couple of quick points to build on what you mentioned:
1. Watch out for Bank Holidays: The triple swap schedule isn't strictly tied to Wednesdays; holidays in either currency's country can shift settlement dates, resulting in unexpected triple/double swap days.
2. Mind the Spread Widening at Rollover: Even if you aren't holding long-term, opening or closing trades right around the 5 PM EST rollover window can get messy due to low liquidity and widened spreads on top of the swap charge.
Personally, I always account for positive/negative swap when planning swing trades lasting more than 3–4 days. If the setup is borderline, a heavy negative swap rate is usually enough for me to pass or adjust my hold target.
How many here actively look for positive swap setups to carry over the weekend?
