Swap in Trading
A swap, in trading, is a fee charged for keeping a position open overnight. It is either credited to the trading account or debited from it.
The swap rates are measured in pips or percentages.
• Swap Calculation Formula in Pips
Number of Lots * Swap * Pip Value (Last Decimal of Price Quote) = Charged Swap
• Swap Calculation Formula in Percentage
Number of Lots * Swap / 100 / 360 * Position Value = Charged Swap
See the table below for current swap rates at Gerchik & Co.
Long position
Short position
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