CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

76.09% of retail investor accounts lose money when trading CFDs with this provider.

How to calculate swap rates (Currency Pairs & Indices)

The formula for calculating swap rates = Swap Rate x Lots (Volume) x Number of Nights = Swap (in base currency)

The first number that is required is the Swap rate itself. It can be either a positive or negative number that is based on interest rates. Swap rates are also different for long and short positions. So, if you placed a long position (buy) you will make the calculations with the Swap long rate and if you placed a short position (sell) you will use the Swap short rate.

Note: Swap rates vary from asset to asset and are measured on a standard size of 1 standard lot (100,000 base units for Forex pairs).

AUD/USD example:

Swap LONG is – 4.38

Swap SHORT is 0.14.

You opened a long position (BUY), so you will do the calculations with – 4.38.

Lots (Volume):  In the case of AUD/USD, this number ranges from 0.01 and 40.

Triple Swap = Number of nights, in which the swap rates were applied.

So now we will carry out the calculation with our data.

The long swap of – 4.38 is multiplied by the 2 lots:

4.38 x 2 = -8.76 AUD

Or, if you held the position open for more than 1 day, multiply by the number of nights. In our case the position was open for 5 nights:

-8.76 x 5 = -43.8 AUD

This is the monetary value of the swap rate on your trade for those 5 nights. The number is positive and works in your favor.

The AUD/USD pair is charged in AUD. The amount would be then converted into the currency of your account.