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What Is Swap (Overnight Financing)? | Borearis
Swap is the interest paid or earned for holding a leveraged position overnight.
Why it exists
Leverage means you borrow one currency to hold another. The interest difference between the two is passed on daily.
Sign and size
If you hold the higher-yielding currency, you may earn swap; the opposite pays. Wednesday usually carries triple swap because of the weekend value date.
Why swing traders care
A position held for weeks can pay more in swap than the spread. Check the swap rates before planning a carry trade.
Swap is not included in the spread cost calculator; add it separately for multi-day trades.
When is swap charged?
At the daily rollover, usually 17:00 New York time.
Can swap be positive?
Yes, if you hold the higher-yielding side of the pair.
Educational content only, not investment advice.