Swap is an overnight financing charge or credit applied to a trader’s account at 21:00 GMT+0 during summer and 22:00 GMT+0 during winter.

Depending on the trading day and instrument, swap may be charged at the standard rate, charged at a triple rate, or not charged at all. The swap schedule may also change due to public or bank holidays.

Factors That Affect Swap

Several factors can affect the swap applied to a trading instrument, including:

1. Central bank interest rates
2. Currency exchange rates, where applicable
3. Position type — long (buy) or short (sell)
4. The broker’s swap rates and financing conditions

Triple Swap

Triple swap is applied to account for the additional days included in the settlement period when a position is held overnight on the applicable day.

For most forex instruments, which typically follow a two-business-day settlement cycle, triple swap is generally applied on Wednesday to account for the weekend. This means that three days’ worth of swap may be charged or credited to the account.

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