What is a SWAP?
Swap fee (Swap rollover) is the interest rate differential between the two currencies of the pair that you are trading. The swap fee is charged for positions kept overnight. The value of swap is calculated according to whether your position is long or short.
The details to the swap charges can be found here.
🧑💻 PRO Tip: You can also calculate your swaps in our Swaps Calculator.
Why does NAGA charge Swaps?
NAGA (as any other brokerage company) charges swaps because the positions you trade actively overnight are not settled daily. This means open positions are rolled over daily till you decide to close the positions. Therefore NAGA charges a FX pair interest rate differentials in order to reflect the cost of rolling position over to the new day.
When do we charge Swaps?
Swaps are calculated daily at midnight for the previous trading day. They are accumulated on your trade (under the 'Swaps' field) and then deducted from your PNL when you close your trade.
There is also a triple swap charge on Wednesday or Friday depending on the asset class of the instrument you’re trading on which covers the upcoming weekend.
The triple swap charges are applied for CFDs on:
🔵 Wednesdays for Forex, Futures, Commodities
🔵 Fridays for Indices, Stocks, ETFs, Cryptos
Where can I find my Swap charges for each trade?
Swaps can vary every day, they are not fixed, they are variable depending on the market conditions.
🔵 In your daily statement received by email, you will see transparently every single swap fee charge per trade. You may also see them clicking on each active or closed trade details.
How are the Swaps calculated?
The formula for calculating the daily swap charge is as follows:
Swap Charge (daily) = [Swap Long or Short] * [Lot Size] * [Lot Value] * [Tick Size]
The swap calculation for cryptocurrencies is in percentage terms:
Swap (daily) = Opening Price x Volume x (Long or Short Percentage) / 360
The amount of the formula is calculated in the currency of the asset and charged in the currency of the client's trading account.