JustChartsWhat Is a Swap (Rollover) in Forex, and Why Is It Tripled on Wednesday?
A swap (or rollover) is the interest paid or earned for holding a leveraged position overnight, charged at about 5:00 p.m. New York time. It reflects the interest-rate difference between the two currencies plus a broker fee, so it can be a cost or a credit. Most brokers charge three days of swap on Wednesday night to cover the weekend.
Key facts
- When charged
- positions open at ~5:00 p.m. New York time
- Based on
- interest-rate differential + broker markup
- Triple swap
- usually Wednesday night (covers the weekend)
- Can be positive?
- yes, holding the higher-yielding currency
- Swap-free accounts
- offered by many brokers (fees may apply)
Why does a swap exist?
When you buy a currency pair you are effectively borrowing one currency to hold another. If the currency you hold pays a higher interest rate than the one you borrowed, you can earn the difference; if it pays less, you pay it. Brokers pass this on daily and add a markup.
Example
Suppose the dollar’s interest rate is well above the yen’s. Buying USD/JPY means holding the higher-yielding dollar, so the swap on a long position may be positive (you are credited), while the swap on a short position is negative. Your platform shows “swap long” and “swap short” in the symbol specification, usually in points or money per lot per night.
Why is the swap tripled on Wednesday?
Spot forex settles two business days after the trade. A position held over Wednesday night settles on Friday-plus-two — that is, Monday — so it covers Saturday and Sunday as well. Brokers therefore charge or pay three days at Wednesday’s rollover. For some CFDs (such as indices) the triple day may be Friday instead.
How to reduce swap costs
- Close day trades before 5:00 p.m. New York time.
- Check the swap for both directions before holding for weeks — it can add up to more than the spread.
- Use a swap-free (Islamic) account if you need one; brokers may charge a fixed admin fee instead.
Central-bank decisions change swap rates — see how Fed decisions move markets.
Frequently asked questions
What time is swap charged in forex?
At the daily rollover, about 5:00 p.m. New York time (21:00 or 22:00 UTC depending on daylight saving). Only positions open at that moment are charged.
Can swap be positive?
Yes. If you hold the currency with the higher interest rate and the rate gap is larger than the broker’s markup, you are credited each night.
Why was I charged three times the swap?
Most brokers apply three days of swap on Wednesday night because those positions settle over the weekend.
Do day traders pay swap?
No, as long as positions are closed before the daily rollover.
Put it into practice
Live charts, an economic calendar and trading calculators — free with a JustCharts account.
See central-bank interest rates in Forex toolsThis article is for education only and is not financial advice. Trading leveraged products carries a high risk of losing money. Contract sizes, trading hours and leverage limits vary by broker and country — always check your own broker’s specifications.