Skip to main content

Introduction to Overnight Order Management Fee

1. What is an "Overnight Swap Fee"? When an order remains open after the trading day ends, the system will automatical...

Written by Jerome

1. What is an "Overnight Swap Fee"?

When an order remains open after the trading day ends, the system will automatically charge an overnight swap fee, also known as a Swap fee or rollover interest.

✅ Essence: It is the cost of holding a position, reflecting the interest from borrowed funds in leveraged trading
✅ Application: Applies to all CFD positions held overnight, including Forex, Gold, Oil, Indices, etc.


2. Charging Time & Multipliers

Item

Description

Charging Time

At daily settlement (usually 00:00 platform time, equivalent to 05:00 Beijing time)

Triple Swap Day

Every Wednesday night, triple fees are charged to cover weekend interest

Exemption

Orders closed within the same day will not be charged


3. How to Check Swap Fees in MT5

✅ Desktop MT5 Steps:

  1. Open the Market Watch window

  2. Right-click on any instrument → Select “Specification”

  3. In the pop-up, locate:

    • Swap long (Buy)

    • Swap short (Sell)

📌 Negative value = customer pays fee
📌 Positive value = customer earns interest (less common)


4. Example (Gold XAUUSD)

Assume the following swap fees for Gold:

  • Buy: -3.25 points

  • Sell: -2.10 points

  • Contract size: 100 oz/lot

  • Point value: $1

  • Position: 1 lot Buy

Overnight Fee = Lots × Swap Points × Point Value = 1 × (-3.25) × 1 = -3.25 USD

📌 Meaning the client will be charged USD 3.25 per night until the position is closed.


5. FAQ

Question

Answer

Will I be charged if I hold for only a few hours?

No. If you close before settlement, no overnight fee applies.

Is Swap fixed?

No. It varies with market interest rates and liquidity, adjusted by liquidity providers.

How can I avoid Swap fees?

Close positions intraday, apply for Swap-Free accounts (if available), or avoid holding positions on Wednesday night.

Does Swap affect stop-out?

Yes. Swap reduces equity, which may accelerate stop-out risk if funds are insufficient.

Did this answer your question?