A Swap is a fee that is either paid out or charged to your Tradin account for keeping a trade open from one day to the next. It is also known as an Overnight Fee or Rollover Fee.
This fee is applied to any position that is still open at the end of each trading day, typically at 00:00 on our server's time.
Paying vs. Earning Swap
When you trade with leverage, you are effectively using borrowed capital. The swap fee represents the difference between the interest rates of the assets involved in your trade.
- When you trade a currency pair, the swap comes from the difference between the interest rate of the currency you bought and the currency you sold.
- dEvery asset has its own underlying interest rate set by central banks or financing cost policies.
Depending on the interest rates and the direction of your trade, the swap can work in your favor or against you:
| Type of Swap | What It Means | When It Happens |
| Negative Swap (You Pay) | You pay a fee or charge. | The interest rate of the asset you bought is lower than the asset you sold. |
| Positive Swap (You Earn) | You receive a credit. | The interest rate of the asset you bought is higher than the asset you sold. |
The Triple Swap Rule
Tradin applies three days' worth of swaps (Triple Swap) on one day per week to account for the weekend, when markets are closed and no daily swaps are charged.
The Triple Swap is applied on the following nights:
| Triple Swap Night | Applies To | Why This Matters |
| Wednesday Night | Forex and Metals (like Gold and Silver). | Covers the trading days of Saturday, Sunday, and Monday. |
| Friday Night | Indices and Cryptocurrencies. | Covers the weekend interest for these specific asset classes. |
Does the Swap Fee Matter to You?
The importance of the swap fee depends entirely on your trading style:
- Day Traders: If you open and close all your trades within the same day, you will never be affected by swap fees.
- Swing Traders: If you hold your trades for many days, weeks, or months, these small daily charges are very important as they accumulate and directly impact your total profit or loss.
Swap-Free Trading Option
Tradin offers a Swap-Free Account for clients who, for religious or strategic reasons, choose not to pay or receive interest. This account type removes all daily overnight swap fees.
