A trader opens a trade expecting to hold it for a couple of days, but a week later sees a drawdown without a single price move against them. The reason is the swap in MetaTrader5, which is deducted for each position rollover overnight and accumulates unnoticed.
This article covers the issue in practice: where to view the swap in MetaTrader5, how it is calculated, and why figures for the same instrument differ among brokers, even to the point of having opposite signs.
Example: for EUR/USD, the swap on a long position might be -6.5 pips per day, and on a short position +1.2 pips. With a volume of 1 lot and a pip value of 10 USD, holding a long trade for 5 days would result in a deduction of about 325 USD, even if the price does not move.
On Wednesdays, swaps are often charged at triple the rate - this compensates for the weekend when exchanges are closed, but settlements still take place.
Example: for GBP/USD, the specification shows Swap Long = -5.5, Swap Short = -2.5.
This is an accurate observation: traders often consider costs only at trade entry, forgetting that the swap accumulates daily and, over long-term holding, can exceed the profit from price movement.
This article covers the issue in practice: where to view the swap in MetaTrader5, how it is calculated, and why figures for the same instrument differ among brokers, even to the point of having opposite signs.
What is a swap and how is it charged
A swap is a fee or credit for rolling a position over to the next trading day, tied to the difference in interest rates between the currencies in the pair. The logic is generally the same for all brokers: if the interest rate of the buy currency is higher than that of the sell currency, a long position receives a positive swap, and vice versa.Example: for EUR/USD, the swap on a long position might be -6.5 pips per day, and on a short position +1.2 pips. With a volume of 1 lot and a pip value of 10 USD, holding a long trade for 5 days would result in a deduction of about 325 USD, even if the price does not move.
On Wednesdays, swaps are often charged at triple the rate - this compensates for the weekend when exchanges are closed, but settlements still take place.
Where to view the swap in MetaTrader5
You need to check the swap before entering a trade, not after the deduction.- Open the Market Watch window.
- Find the desired instrument and right-click on it.
- Select the Symbols item.
- In the window that opens, scroll down the list to the Swap Long and Swap Short lines.
- Note the values - they are indicated in pips or in the deposit currency, depending on the broker's settings.
Example: for GBP/USD, the specification shows Swap Long = -5.5, Swap Short = -2.5.
ℹ INFO
If your trading strategy involves holding positions for several days or weeks, a positive swap on one side of the trade can partially offset the spread and become an additional source of income - the so-called carry trade.
Why swap differs among brokers
Each broker sets its own swap for instruments, based on interbank rates but with its own markup.- The same USD/CHF may have a positive swap on a long position with Broker A and a negative one with Broker B.
- The difference is explained by the broker's markup, the account type (ECN, standard), and the liquidity provider's terms.
- On exotic pairs, discrepancies between brokers are usually larger than on major ones.
⚠ IMPORTANT
Do not transfer a strategy from one broker to another without checking the symbol specification - expecting a positive swap may result in an unexpected deduction with the new liquidity provider.
This is an accurate observation: traders often consider costs only at trade entry, forgetting that the swap accumulates daily and, over long-term holding, can exceed the profit from price movement.
FAQ
1. Is the swap deducted only at night or at any time?
The swap is accrued once a day, when the position is rolled over at a specific time (usually 23:00-00:00 server time of the broker).
2. Can I trade without a swap?
Yes, some brokers offer swap-free accounts, but most often with restrictions on instruments or holding periods.
3. Is the swap the same for all account types with one broker?
Not always - values may differ on ECN and standard accounts due to different commission structures.