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AFT overnight interest (Swap) explanation

1. What is Swap? A Swap is the overnight interest charged or earned when holding a position overnight, based on interest r...

Written by Jerome

1. What is Swap?

A Swap is the overnight interest charged or earned when holding a position overnight, based on interest rate differentials or financing costs.

📌 Settled automatically every night at 23:59 server time.


2. How is it generated?

  • Forex/Gold: from interest rate differentials between currencies

  • Indices, Oil, Crypto: based on financing cost and position direction

✅ It can be a cost (negative)
✅ Or an income (positive)


3. Common instruments calculation

  • Forex: based on currency rate differences

  • Gold/Silver: USD rate + financing rate

  • Indices: annualized rate, settled daily

  • Oil: futures rollover + financing, usually negative

  • Cryptocurrency: high volatility, swaps usually higher


4. Triple Swap Day

Every Wednesday (some platforms Friday), triple swaps are charged or credited to cover the weekend.

Holding overnight on Wednesday = 3 days of Swap


5. How to check?

MT5 → Market Watch → Right-click instrument → “Specification” → View Swap Long / Swap Short

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