Want to know how to understand and assess swap fees?
Have a look at the below points for assistance.
A swap, also known as a “rollover fee”, is charged for keeping a position open overnight.
A swap is the interest rate differential between the two currencies of the pair you are trading.
Short (Sell) or Long (Buy) is the term used depending on the position you are trading.
To assess your profits/losses, you may use the below formula:
Swap Long: One Point x Trade Size x Swap Long in Points
Swap Short: One Point x Trade Size x Swap Short in Points
What are the "One Point" and "Trade Size"?
One Point = 0.00001 in EURUSD is the last digit in the price
Trade Size = Lots * Contract Size = 100,000
You can check the swap values, contract sizes, swap long, swap short and triple swap days for different instruments in the Symbol properties window on the mobile app. On the desktop app right-click on a symbol in the Market Watch window and select "Specification".
So, if we were to apply the above information into an example:
EURUSD: 0.00001 x 100,000 x -4.98 = -4.98 USD