The swap, also known as a rollover, is a type of interest charged on positions held overnight on forex instruments and Contracts For Difference (CFDs). The charge is applied to the nominal value of an open trading position overnight.
Depending on the swap rate and the position taken on the trade, the swap value can be either negative or positive. In other words, you will either have to pay a fee or be paid a fee for holding your position overnight. In addition, we also must take into account that this commission could be charged three times on a Friday or Wednesday, depending on each instrument involved.
Additional information regarding the factors affecting the swap value is explained in the “What is a swap?” article.
Please note: The swap values and respective country interest rates used in the calculations below are for illustrative purposes only. For the most up-to-date swap values, please refer to the Contract Specifications page for each instrument. For the most up-to-date information on country interest rates, please consult third-party sources.
Below, we provide example calculations to demonstrate how swap values are determined in practice.
1. Forex:
As an example, let’s take these historical rates for EURUSD:
Swap rates received from Liquidity providers:
LONG | SHORT |
-2.15485 % | 1.57155 % |
Admirals historical Admin fee: 3%
For a long position, the annual swap rate is calculated by subtracting the Admin fee from the annual rate received from Liquidity provider Using the example rates, this becomes:
-2.15485% - 3% = -5.15485% annually
Daily swap = annual swap / 360
To convert this into the daily rate shown on the Contract Specifications page the annual rate is divided by 360, giving a daily rate of -0.01431%
For a short position, the annual short rate is calculated as:
1.57155% - 3% = -1.42845% annually,
which corresponds to a daily rate of -0.003%.
Similarly to the previous example with Indices, a long position carries the cost of holding the instrument and therefore results in a negative interest rate. A short position normally earns interest, which is why its annual rate begins with a positive reference rate. In this example, however, the markup outweighs the reference rate, resulting in a negative value even for the short position.
Kindly note that on the trading platform (MetaTrader), swap rates are displayed on an annual basis, meaning you would see –5.15% for long positions and –1.42% for short positions.
Now let’s apply this rate to personal swap calculations:
The open position of 3 lots of EURUSD
Swap Value (Long), Daily interest rate = -0.01431%
Swap Value (Short), Daily interest rate = -0.003%.
Swap Value (Long) in MetaTrader, Annual interest rate = -5.15%
Swap Value (Short) in MetaTrader, Annual interest rate = -1.42%
3-days swap on Wednesday
Please note that for this example, EURUSD quotes at 1.16062
Please note that for 3 lots order, 1.00 point in EURUSD is equal to 30 USD
Example with daily swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (3*100000*1.16062) * (-0.0001431) = -49.82 USD Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (3*100000*1.16062) * (-0.00002%) = -10.44 USD
Example with annual swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (3*100000*1.16062) * (-5.15/100/360) = -49.82 USD.
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (3*100000*1.16062) * (-1.42/100/360) = -10.44 USD
2. Indices:
As an example, let’s take one of ESTR (Euro Short-Term Rate) historical annual rates: 1.931%
For a long position, the annual swap rate is calculated by taking the reference interest rate and subtracting the additional 2.5% markup. Using the example ESTR rate of 1.931%, this becomes:
–1.931% – 2.5% = –4.431% annually
Daily swap = annual swap / 360
To convert this into the daily rate shown on the GERMANY40 Contract Specifications page, the annual rate is divided by 360, giving a daily rate of –0.01231%.
For a short position, the annual short rate is calculated as:
1.931% – 2.5% = –0.569% annually,
which corresponds to a daily rate of –0.00158%.
The difference between the long and short annual rates reflects the financing mechanics of the position. A long position carries the cost of holding the instrument and therefore results in a negative interest rate. A short position normally earns interest, which is why its annual rate begins with a positive reference rate. In this example, however, the markup outweighs the reference rate, resulting in a negative value even for the short position.
Kindly note that on the trading platform (MetaTrader), swap rates are displayed on an annual basis, meaning you would see –4.43% for long positions and –0.57% for short positions.
Now let’s apply this rate to personal swap calculations:
The open position of 10 lots in Germany40
Swap Value (Long), Daily interest rate = -0.01231%
Swap Value (Short), Daily interest rate = - 0.00158%
Swap Value (Long) in MetaTrader, Annual interest rate = -4.43%
Swap Value (Short) in MetaTrader, Annual interest rate = -0.57%
3-days swap on Friday
Please note that for this example Germany40 quotes at 15,000 points
Please note that 1.00 point in Germany40 is equal to 1.00 EUR
Example with daily swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15000) * (-0,0001231) = - 18.46 EUR
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15000) * (-0,0000158) = -2.37 EUR
Example with annual swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15000) * (-4.43/100/360) = - 18.46 EUR.
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*15000) * (-0.57/100/360) = - 2.37 EUR.
3. Commodities
- Example with Gold
Open position of 1 lot in GOLD (100 oz)
Swap Value (Long), Pips = -9,916
Swap Value (Short), Pips = -5,817
Please note that 1 pip is equal to 0.010 and the difference between 1801,000 - 1800,000 = 1 USD, so the value of 0.010 is equal to 0.01 USD.
3-days swap on Wednesday
Swap Value (Long) = Volume * Contract size * Swap = 1 * 100* (-0.09916) = - 9,916 USD
Swap Value (Short) = Volume * Contract size * Swap = 1 * 100* (-0.05817) = - 5,817 USD
- Example with Brent
The open position of 1 lot in BRENT (100 barrels)
Swap Value (Long), Daily interest rate = -0.00231%
Swap Value (Short), Daily interest rate = -0.01975%
Swap Value (Long) in MetaTrader, Annual interest rate = -0.83%
Swap Value (Short) in MetaTrader, Annual interest rate = -7.11%
3-days swap on Friday
Please note that for this example Brent quotes at 67.00 USD
Please note that 1.00 point in Brent is equal to 1.00 USD
Example with daily swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap= (1*100*67.00) *(-0.0000231) = - 0.15477 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (1*100*67.00) *(-0.0001975) = - 1.32325 USD
Example with annual swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap= (1*100*67.00) * (-0.83/100/360) = - 0.15477 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap= (1*100*67.00) * (-7.11/100/360) = - 1.32325 USD
4. CFDs on Stocks
The open position of 10 lots in Apple
Swap Value (Long), Daily interest rate = -0.01686%
Swap Value (Short), Daily interest rate = -0.01644%
Swap Value (Long) in MetaTrader, Annual interest rate = -6.08%
Swap Value (Short) in MetaTrader, Annual interest rate = -5.92%
3-days swap on Friday
Please note that for this example Apple quotes 125 USD
Please note that 1.00 point in Apple is equal to 1.00 USD
Example with daily swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00) *(-0,0001686) = - 0.21075 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00) *(-0,0001644) = - 0.2055 USD
Example with annual swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00) * (-6.08/100/360) = - 0.21075 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (10*1*125.00) * (-5.92/100/360) = - 0.2055 USD
5. Digital currencies
The open position of 1 lot in BTCUSD
Swap Value (Long), Daily interest rate = -0.08333%
Swap Value (Short), Daily interest rate = 0.02778%
Swap Value (Long) in MetaTrader, Annual interest rate = -30%
Swap Value (Short) in MetaTrader, Annual interest rate = 10%
3-days swap is not charged
Please note that for this example, BTCUSD quotes at 40,000 USD
Please note that 1.00 point in BTCUSD is equal to 1.00 USD
Example with daily swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000) * (-0.0008333) = - 33.332 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000) * (0,0002778) = 11.11 USD
Example with annual swap:
Swap Value (Long) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000) * (-30/100/360) = -33,33 USD
Swap Value (Short) = notional value * swap = (volume*contract size*price) * Swap = (1*1*40,000) * (10/100/360) = 11.11 USD
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