How To Calculate Swap

In the world of Forex, they are free to determine when to collect or closure/liquidation of open positions. There are times that we don't want to close an open position, while the trading days immediately close (at night). When this happens, it is usually the broker will charge you a stay or commonly known as the rate of interest (Swaps).

Interest rate swap are the fees or granted if it is greater than a day of negotiation, open positions, and only the contract products imposed on the Strip only. In the trading platform metatrader, the Exchange is calculated automatically. But where does this figure reaches in reality? Let's learn to count them.

Exchange of formula is as follows:

formula to calculate the swap on trading forex

Where: I = constant velocity and H = weight of the day

Constant flow (i) or can be called interest rate usually is updated on Monday, you can check the setting of the trading platform through a right click dikotak observation of the market, click on the symbol, select the symbol that you want to see the interest ratenya, click Properties and the specification of the command prompt box appearscheck in long exchange swap buy and sell positions for short.

the example of swap in metatrader

Today the weight (H) is the value of each day in a week, but should pay attention to, specifically from Wednesday to Thursday was considered from one day to another, whereas for 3 days Friday until Monday only 1 day only.

For more details, see the following picture:

the formula to calculate weights day swap for trading forex


We buy transactions on Monday 18:00 and the positions which we closed on Tuesday at 14:00 (morning), then the transaction have not been able during the night.

We do the transaction Tuesday at 14:00 (morning) and close this day there, but at 18: 00, after the transaction that we live one night a day.

We do the transaction Wednesday 23:00 WIB (west indonesia time) and recently closed next Thursday at 18:00, after the transaction that we live a night for three days.

We do the transaction on Thursday 14:00 (morning) and close this day there at 18:00, after the transaction we have experienced a night of three days.

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