Learn Forex - How To Calculate Swap

In the world of Forex, we are free to determine when we pick up or closing/liquidation of open positions. There are times when we don't want to close an open position while trading days immediately close (overnight). When this happens, it is usually the broker will charge a stay or commonly referred to as the Interest Rate (Swaps).

Interest Rate Swap or are fee charged or granted if it has open positions in excess of one day trading and only contract products imposed on the scroll only. In the trading platform metatrader, the swap is calculated automatically. But where did that figure actually achieved? Let's learn how to count them.

Swap calculation formula is as follows:

Where: i = rate constant, and H = weight of the day

Constant rate (i) or can be called interest rate is usually updated on Mondays, you can check the adjustment on the trading platform by means of right click dikotak market watch, click on the symbol, select the symbol that you want to check interest ratenya, click properties and the box appears the symbol specification, check on long swap to swap buy and sell positions for short.

Weight today (H) is the value of each day in a week, but we should pay attention to, specifically to Wednesday to Thursday was considered overnight, while for 3 days Friday to Monday only considered 1 day only.

For more details see the following picture:

Example:

1. We do BUY transactions on Monday 18.00 and positions that we close on Tuesday next at 02.00 pm (early morning), then the transaction we haven't experienced overnight.
2. We do the transaction BUY on Tuesdays at 02.00 pm (early morning), and we close that day but at 06.00 PM, then the transaction we've experienced overnight one day.
3. We do the transaction BUY on Wednesday 23: 00 WIB, and recently we close next Thursday at 06.00 PM, then the transaction we've experienced overnight three days.
4. We do the transaction BUY on Thursday at 02.00 pm (early morning), and we close that day at 06.00 PM, then the transaction we've experienced overnight three days.