Swap in MetaTrader 4 and 5 is the interest fee credited to or debited from your account for holding a position overnight — also called a rollover or overnight fee. In forex you earn a positive swap when the currency you buy has the higher interest rate, and pay a negative swap when it has the lower one. Below: what it is, how it’s calculated, how to view it, why some days are charged triple, and why it matters for automated strategies.
What is swap?
When you open a forex position you are effectively borrowing one currency to buy another. The two currencies carry different interest rates, and that difference is settled every night as the swap. If the currency you bought has the higher rate, you receive a small positive swap; if it has the lower rate, you pay a negative swap.
That interest-rate view fits forex directly. For CFDs on indices, metals or shares, the overnight charge is better understood as broker-defined financing: the broker sets the long and short values — which may include a markup — so both directions can be negative. Whatever the instrument, the exact figure comes from your broker’s symbol specification, not from the raw interest-rate difference alone.
How swap is calculated: the common calculation modes
Your broker sets a swap long and swap short value for each symbol, and MetaTrader applies it once per day at the daily rollover (usually around midnight server time). MetaTrader 5 supports several swap-calculation modes, and the broker chooses one per symbol:
- Points — swap expressed in points of the symbol (the most common mode for forex).
- Money — a fixed amount in the symbol’s base, margin or deposit currency.
- Interest (annual %) — an annual percentage applied to the current or the open price.
- Reopen modes — the position is re-opened at the current or previous close price to reflect the financing.
This article details the most common one, points mode, where the overnight charge works out as:
Overnight swap = swap value (points) × point value per lot × number of lots.
On a 5-digit forex account, one point is worth roughly $1 per standard lot when the quote currency is the US dollar. So if you hold 1 lot of EUR/USD long and your broker shows a swap long of −4.2 points, the overnight charge is about 4.2 × $1 = $4.20. If the swap long were instead +1.5 points, you would be credited about $1.50 a night. Always confirm the mode and the point value your broker uses — these are example figures, not a quote.
How to view swap in MetaTrader 4 and 5
- Open the Market Watch window (View > Market Watch).
- Right-click the symbol and choose Symbols (MT4) or Specification (MT5).
- Open the symbol’s specification / properties.
- Read the Swap long and Swap short values, along with the swap mode and the three-day (triple) swap day.
Swap long is what you earn or pay for a buy position held overnight; swap short is the same for a sell position. Values vary by broker and change over time, so check them before holding positions for several days.
Positive vs negative swap
A positive swap pays you to hold the position overnight; a negative swap costs you, and is the more common case. Interest-rate differences drive forex swaps, but the final long and short values are set by your broker and can include a markup — so either or both directions may be negative. If you hold a losing-swap position for a week, the cost compounds every night, so for multi-day trades the swap can matter as much as the spread. Some traders deliberately hold high positive-swap pairs for the carry, but the exchange-rate risk usually dwarfs the swap income, so treat carry as a bonus, not a strategy on its own.
Triple swap: why it’s charged — and which day applies
Spot forex settles two business days after the trade. To account for the weekend, brokers charge three days of swap in a single night. The day is set per symbol (MetaTrader’s SYMBOL_SWAP_ROLLOVER3DAYS) — for most forex brokers it falls on Wednesday, though some use Friday and other instruments can differ. So a position that costs $4.20 a night will cost about $12.60 on the triple-swap day. Check the symbol specification for the exact day.
Swap-free (Islamic) accounts
Many brokers offer swap-free or “Islamic” accounts that replace overnight interest with a fixed administration fee, for traders whose beliefs prohibit interest. The mechanics differ by broker, so check the exact fee structure — a swap-free account is not always cheaper for short-term trading.
Why swap matters for algorithmic trading
If you build automated strategies, swap is not just a fee — it is part of a realistic backtest. A strategy that looks profitable without overnight costs can turn negative once real swaps are applied, especially for systems that hold positions for days. When you validate a strategy, make sure your broker’s swap and symbol settings are reflected in the test before you deploy it to MetaTrader. This broker-accuracy step is one of the criteria in our comparison of algorithmic trading software.
Frequently asked questions
What does swap mean in MT4 and MT5?
Swap is the interest or financing credited or charged for holding a position overnight. In forex it is based on the interest-rate difference between the two currencies; for other instruments it is set by the broker. MetaTrader applies it automatically at the daily rollover.
How is swap calculated in MetaTrader?
In the common points mode: swap value in points × the point’s monetary value per lot × number of lots. Your broker sets the swap long/short values and the calculation mode in the symbol specification.
Why is swap charged three times on one day?
Because spot forex settles two business days out, brokers add the weekend’s swap in one night — usually Wednesday, though the day is set per symbol — so you’re charged three days of swap at once.
How do I avoid swap?
Close positions before the daily rollover to avoid overnight swap entirely, or use a swap-free account if one suits your needs. Intraday strategies that flatten before rollover pay no swap at all.
Educational content only, not investment advice. Trading involves substantial risk of loss. Swap figures are examples — confirm the exact values and calculation mode with your broker.
