Swap rates

The swap rate, also known as the rollover, is the amount added or deducted for holding a trading position open overnight. Swaps are applied only when positions are kept open until the next trading day, specifically at 23:59 server time.

In forex trading, swap rates are determined by the overnight interest rate differential between the two currencies in the pair and whether the position is long or short. When a trader keeps a position open overnight, they will pay interest on the currency sold and receive interest on the currency bought. Therefore, swaps are derived from the interest rates of the countries involved in the currency pair, the direction of the trade (long or short), and the current market conditions.

At XS, we debit or credit clients' accounts at competitive rates for all positions held open after the daily rollover time (23:59 server time). The rollover time signifies the beginning and end of a trading day. Any positions still open at 23:59 server time, are subject to rollover.

For example, positions opened at 00:00 server time are not subject to rollover until the next day, whereas positions opened at 23:58 server time will experience a rollover at 23:59 server time. Each position open at 23:59 server time will result in a credit or debit appearing on your account.

While there is no rollover on Saturdays and Sundays when the markets are closed, banks still calculate interest on any position held open over the weekend. Consequently, we apply a 3-day rollover rate on Wednesdays for forex and metals, and on Fridays for indices, energies, and stocks.