General information
Each country’s central bank sets its own key interest rate. These rates vary across countries and the differences can be quite significant.
The minimum term for an interbank loan is one day, and banks charge interest on the amounts you borrow for that period.
For example, the interest rate for USD is several times higher than for JPY. Therefore, when you buy USD against JPY, you are effectively receiving a currency (USD) with a higher interest rate, while giving away a currency (JPY) with a lower one.
In this case, when you buy USD/JPY, the broker pays you interest for each day the position remains open. Conversely, if you sell USD/JPY, you will pay interest to the broker for each day the position is rolled over.
Central banks regularly adjust their key interest rates, so swap values are updated from time to time. This applies not only to currencies, but also to other types of financial instruments.
Example of Calculation
Let’s assume you have an open EUR/USD trade with a volume of 0.5 lots.
To calculate the swap for holding 0.5 lots overnight, use the following formula:
-0.082 (swap for minimum lot size) * 0.5 (trade volume) / 0.01 (minimum lot size) = -4.1
So, the overnight swap for holding a 0.5 lot EUR/USD position would be -4.1.
How to check the Swap for a Specific instrument in MetaTrader?
Desktop
In the terminal right-click on the instrument and select "Specification".
Mobile app
Click on the instrument and select "Symbol properties".
