Rollover Fee

A rollover fee (also known as a swap fee) is a fee charged by a broker for holding a position overnight in the forex market or other financial markets.

This fee is determined by the difference in interest rates between the two currencies in a currency pair and whether the trader is long (buying) or short (selling) on the pair.

If traders hold a long position (buy), they may earn or pay a rollover fee based on the interest rate differential between the base currency (the first currency in the pair) and the quote currency (the second currency).

• If the base currency has a higher interest rate than the quote currency, trader is likely earn a rollover fee;
• If the base currency has a lower interest rate, they are likely pay a rollover fee;

If they hold a short position (sell), the situation is reversed.

• If the base currency has a higher interest rate than the quote currency, traders are likely have to pay a rollover fee;
• If the base currency has a lower interest rate, they are likely earn a rollover fee.

Check out this article on how to calculate the rollover fee.

Rollover fees are usually charged or credited at the end of the trading day and are typically applied once per day for positions held overnight. These fees can either increase or reduce the cost of holding positions for longer periods, making them an important consideration for traders, especially those who engage in long-term strategies.

Brokers may offer rollover or swap free accounts for clients in certain regions, where interest-based transactions are avoided.

At Headway, Swap Free is activated automatically for personal area registrations from Islamic countries. If you need to activate or deactivate Swap Free please contact our Customer Care team by sending an email to care@hw.site