MetricBeginner
Swap
syn. Rollover / Overnight Rate
An overnight financing charge or credit applied to positions held past the daily rollover time, based on the interest rate differential between the two currencies in a pair.
Last updated: February 10, 2026
1
At the daily rollover time (typically 5:00 PM EST), all open positions are evaluated.
2
The interest rate differential between the two currencies in the pair is calculated.
3
If the trader holds the higher-yielding currency, they receive a credit (positive swap).
4
If the trader holds the lower-yielding currency, they pay a charge (negative swap).
5
Swap rates are adjusted by the broker based on interbank rates plus a markup.