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Swap (rollover) — definition & meaning

Interest paid or earned for holding a leveraged position overnight.

A swap, or rollover, is the interest adjustment applied when you hold a leveraged position past the daily rollover time. It reflects the interest-rate difference between the two currencies or the cost of financing.

Depending on the position and rates, a swap can be a charge or a small credit. For traders who hold for days or weeks, swaps add up and should be part of the cost calculation.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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