Would you like to know how you can understand the meaning behind Swap Short and Swap Long?
Follow the below information:
The interest that is accumulated when you keep a trade open past 5pm (EST) is what is called a Swap.
Swap rates are calculated from the interest rates of the central banks of the two currencies in a pair.
When you hold a short position (Sell) open overnight, you're doing a swap short. The term swap long refers to keeping a long (Buy) position open overnight.
To calculate the swap fee, you can use the following formula:
Swap Long: One Point x Trade Size x Swap Long in Points
Swap Short: One Point x Trade Size x Swap Short in Points
0.01 x 100 x 1.7427 = 1.74 USD
This means that you would receive $1.7427 in swap fees for keeping 1 lot short of XAUUSD past the end of the day.
Pairs that are closed on weekends will have a triple swap charge. This charge is usually taken on a Wednesday but sometimes can differ. The reason for this charge is that it makes up for the 2 days that the market is actually closed, so do not be alarmed if you see this on your account.
You are able to find the below information for different instruments here at TradOwise:
≈ Swap Values
≈ Contract Sizes
≈ Swap Long
≈ Swap Short
≈ Triple Swap Days
To do this, follow the below steps for both the mobile app and desktop app:
≈ Click/tap on the Symbol Properties window.
≈ Click/tap on the Market Watch window
≈ Right-click/tap on a symbol.
≈ Click/tap on the Specification option.