Forex glossary
swap (overnight charge)
Documentation context: Retail-CFD financing depends on the symbol and provider; it is a different arrangement from the wholesale FX swap described by BIS.
In retail CFD trading, swap is financing applied to a carried position and can be a debit or credit. Rate units, provider adjustments, timing and charged days depend on the instrument and provider. It differs from a wholesale FX swap combining two currency exchanges on different dates.
Illustrative example
How does it work in practice?
Suppose a fictional CFD has exactly three financing debits of 2 USD each and no other fees. The swap reduces the result by 6 USD even when entry and exit prices are equal.
Valuation, closed P/L and charges
Fictional tariff: 3 USD per lot per side, plus three financing credits of +1 USD per lot each. A 0.20-lot position closes with +20 USD of price P/L.
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| Term | What it describes | Shared example |
|---|---|---|
| Floating P/L | Valuation of a position still open; it does not confirm a future exit price. | A +5 USD reading before closure remains unrealized. |
| Realized P/L | P/L of the closed portion, with separately assigned charges and credits. | 20 − 1.20 + 0.60 = 19.40 USD net for the closed position. |
| Commission | A fill-related fee; this model charges both opening and closing. | 3 × 0.20 × 2 = 1.20 USD total commission. |
| swap (overnight charge) | Financing on a carried position; it can be a debit or credit. | +1 × 0.20 × 3 = +0.60 USD; three applications, not an assumed calendar rule. |
Takeaway: Separate open valuation from closed results. Signs and fee bases are inputs to establish, rather than fixed features of the market.
Change an assumption, see the result
What changes if…?
Change the signed daily swap amount for the whole position and the day count. Compare credits with debits; the model assumes no triple-swap weekday.
Model: price P/L already uses the relevant Bid/Ask prices. Commission is charged twice; swap is a hypothetical fixed daily amount for the whole position. No conversion or other fees. Actual rates and day multipliers may differ.
Check your understanding
Include the sign, quantity and explicit financing-application count in the model.
Show the answer and explanation
+0.60 USD
+1 × 0.20 × 3 = +0.60 USD. The application count is explicit; it is not inferred from a calendar.
Reconcile a trade result with the account
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Read the fuller explanation
Related terms
Sources and documentation
- MQL5 Reference: Symbol Properties
Symbol properties distinguish point from tick size and specify contract size, volume steps, and swap calculation units and multipliers.
Document read: - BCBS/BIS: Foreign exchange risks — Basel Consolidated Guidelines, RMA20
The guidelines define a wholesale FX swap as a currency exchange combined with a reverse exchange with the same counterparty at a later date.
Document read: - Exness Help Center: About swap
This provider's documentation describes swap as a debit or credit for carrying a position, with calculation units, times and charging days depending on the product.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.