A rollover fee, also known as “swap”, is charged when you keep a position open overnight.
A forex swap is the interest rate differential between the two currencies of the pair you are trading.
It is calculated according to whether your position is long or short.
How to Calculate Swap
For forex, here’s the formula to calculate swap:
Swap = (Pip Value * Swap Rate * Number of Nights) / 10
Trading 1 lot of EUR/USD (short) with an account denominated in EUR
Pip value: $10
Swap rate: 0.54
Swap fee: (10 * 0.54 * 1) / 10 = $0.54
If you liked this article, then please subscribe to our Newsletter Services for Forex Related updates. You can also find us on Facebook and can subscribe to our YouTube channel. You can also join our Telegram Channel for real-time trading analysis and discussion. Here is our service sitemap. If you have any confusion please leave your comments below.