Swap Fee

A Swap Fee, which is also called a Rollover Fee, is the interest that is applied when you keep a trading position open overnight for the next day. 

Swap may be negative or positive. The deduction or addition to the trading account occurs at 00:00 GMT+3 Monday through Friday.  

It is calculated according to whether your position is Long (Buy) or Short (Sell) and charged “Swap Long” or “Swap Short” correspondingly.

Please take note:

• Triple swap is charged on Wednesdays for all trading instruments except energies.
• Triple swap for UKOIL, USOIL and XNGUSD is charged on Fridays.
• No Swap is charged for trading instruments in the Cryptocurrency and Stocks groups.

You can check the Long and Short Swap for each trading instrument on the Headway website, in the Trading Instrument specifications or in MetaTrader by right clicking on the trading instrument and selecting Specification.  

How to calculate the Swap Fee:

Position Lot Volume x Contract Size × Point Size × Swap Short or Swap Long × Number of Days    

You can find the contract size, point size and swap long/short in the Metatrader contract specifications. The Point Size is displayed as Digits in the MetaTrader specifications, it is how many digits follow the decimal point in the quote. For most currency pairs the point size is 0.00001.

Example: Let’s say you open a Long Position (Buy Trade) for 1.0 standard lot on EUR/USD. You open the position on Monday and keep it open overnight until Tuesday.  

Position Lot Volume: 1
Contract Size: 100,000
Point Size:  0.00001
Swap Long: -6.3356
Number of Days: 1

1 x 100,000 x 0.00001 x -6.3356 x 1 = -6.34

$6.34 would be deducted from your trading account for keeping the position open overnight. 
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Let’s look at another example for USD/JPY. You open a Short Position (Sell Trade) for 1.0 standard lot on USD/JPY. You open the position on Tuesday and close it on Friday at 11:00 (am) GMT+3. Let’s calculate: 

Position Lot Volume: 1
Contract Size: 100,000
Point Size:  0.001 (Currency pairs that contain JPY are quoted in 3 digits)
Swap Short: -4.2754
Number of Days: 5 (Triple swap is charged on Wednesdays for currency pairs)

1 x 100,000 x 0.001 x  -4.2754 x 5 = -2137.7 (The Swap is calculated according to the quote currency)

¥2138 (Japanese Yen), or approximately $16 (the conversion depends on the currency of the account) will be deducted from the trading account for keeping the position open overnight from Tuesday until Friday.