What is Swap Point?

Swap fee, also known as overnight interest, is the interest on overnight orders for trading holdings. Eightcap does not carry out physical delivery of transactions. Therefore, at the end of the trading day, all open orders will be carried forward to the new trading day, so a swap fee will be paid or charged.

Whether you receive overnight interest or pay overnight interest depends on your trading product and whether the order is to buy “long” or sell “short”.

  • The swap fee is only applicable if the position is held overnight.
  • The settlement time of the swap fee is the end of the trading day or 00:00 platform time.
  • The swap fee is calculated in points, which can be positive or negative.
  • The swap fee will be settled every trading day, but on Wednesday night or Friday (depending on the type of transaction), the swap fee needs to be calculated on the weekend, usually three times the usual.
  • Each trading product has its own swap fee, and it is displayed in the product specifications with 1 standard lot size.

To view the latest swap fee, please refer to the market quotation window in EightCap’s MetaTrader 4 trading software.

Just right-click on any product in the “Market Watch” window and select the “Specifications” option from the menu. A new window that opens will display the specifications of the product, including the swap fee for long and short orders of the selected trading variety.

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How to calculate Swap Fee (overnight interest)?

The foreign exchange swap fee, also known as overnight interest, is a fee paid or collected for open orders at the end of each trading day. This is the interest paid or collected and used to keep the position overnight. Swap fees allow orders to be held to the next trading day without closing or settlement.

When an order is held overnight, a swap fee (also called overnight interest) needs to be calculated. These fees are set by the financial institution that cooperates with, and then applied to each broker that connects to that institution. All open orders after midnight (platform time) are subject to a swap fee. Generally, different brokers and platforms have slightly different fees for swaps, and they can also be settled at different times.

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