Calculate overnight swap costs for forex positions
Swap (or rollover) is the interest charged or earned for holding forex positions overnight. It reflects the interest rate differential between the two currencies.
Swaps are applied at the daily rollover time (typically 5 PM EST). Wednesday night incurs a triple swap to account for weekend settlement.
Carry traders specifically seek pairs with positive swap to earn income from the interest differential, while short-term traders should factor swap costs into their profit calculations.
