Swap / Rollover Fee
Also known as: overnight fee, rollover, swap rate, financing cost, overnight swap, rollover fee
What is it?
A swap or rollover fee is the overnight financing charge - or occasionally a small credit - that a broker applies for holding a leveraged position past the daily rollover time, usually 5 p.m. New York. Because leverage means you are effectively borrowing one currency or asset to buy another, the fee reflects the interest-rate difference between the two sides of the pair. If the currency you are buying pays more interest than the one you are selling, you may receive a credit; if it pays less, you pay the difference.
For example, hold one standard lot of a pair where the swap is quoted as minus 7 dollars per night, and after three nights you have paid about 21 dollars in financing on top of any market move. The charge is small per night but it compounds on multi-day and swing trades, quietly eating into a position that is otherwise going your way. A common surprise is the triple swap many brokers apply on Wednesdays: because spot settlement is two business days out, the weekend's two nights of interest are booked in advance, so a Wednesday hold can cost roughly three times a normal night.
Traders who think only about pips and the entry price often overlook this carry cost entirely, then wonder why a flat market still drained their balance over a week. Swap is not a performance figure, but it is a real, recurring cost that any honest assessment of a longer-term trade has to include, and your capital is at risk on every position you keep open.
Why it matters: Swap turns time itself into a cost, so a position held for days can bleed money even when price barely moves.
Swap = position size x (interest-rate differential / 365) x nights held, with a triple charge on the weekend-settlement day
Swap rarely decides a day trade but can materially erode the return on swing and position trades held over many nights.
Real-world example
Holding one standard lot at a quoted swap of minus 7 dollars per night for three nights costs about 21 dollars in financing on top of any price movement.
How SignalBots handles it
SignalBots delivers signals fast over Browser Extensions, Mobile Apps, the MT4/MT5 Connector, TradingView webhooks, Telegram, and the Web Dashboard, but the swap your broker charges is a separate holding cost the platform does not control, so factor it into any multi-day plan and see /risk-warning before trading on leverage.
Pro tip
Check the per-night swap rate before entering any trade you plan to hold overnight, and avoid opening fresh longer-term positions just before the triple-swap day if the carry is against you.
Common pitfalls
Planning only around entry price and pips while ignoring the nightly financing cost that compounds on multi-day holds.
Frequently asked questions
What is a swap or rollover fee?
It is the overnight financing charge a broker applies for keeping a leveraged position open past the daily rollover time. It reflects the interest-rate difference between the two currencies or assets in the pair and can be a charge or, less often, a small credit.
Why am I charged triple swap on Wednesday?
Spot trades settle two business days later, so a Wednesday position settles on a date that includes the weekend. Brokers book those extra two nights of interest in advance, which is why a Wednesday hold typically costs about three nights of swap.
Can a swap ever pay me instead of costing me?
Yes. If the currency you are buying earns more interest than the one you are selling, the differential can be credited to you. The credit is usually small and depends on your broker's rates, so do not treat it as a reliable income stream.
Do swap fees apply to crypto and indices too?
Many brokers apply an overnight financing charge to leveraged crypto, index, and commodity positions as well, not just forex pairs. The exact rate and the rollover time vary by broker, so check each instrument's contract details.
How do I avoid swap fees?
Close positions before the daily rollover time so nothing is held overnight, which is common with day trading. Some brokers also offer swap-free accounts, though they may add other costs, so read the terms carefully before assuming you save money.