What is a swap rate?
Swap rates, also known as overnight or rollover rates, are debits or credits, either earned or paid for holding a position overnight. Swissquote settles overnight positions at 23:00 CET using market accepted, interbank swap rates.
Where do these rates come from?
Institutions that deal in FX put out daily swap rates - prices they are willing to exchange currencies at on a given day. Institutions publish swap rates based on their own risk-management analysis and on market activity. Swissquote's swap rates are essentially the interbank fee for positions held overnight, with a separate rate for each instrument, expressed in absolute values.
- Currency pairs: 100’000 units
- Gold, Palladium, Platinum: 100 ounces
- Silver: 5’000 ounces
- OIL, LCO: 1’000 barrels
- SMI, ESX: 10 units
- DAX: 25 units
- Nil: 6 units
- ALL, CUL, PBL, ZNL: 25 units
- NGC: 10’000 units
- CUC: 25’000 units
AUDJPY Short/Long Swap Rate: -0.0078498305 / 0.0045559725
Position: Sell 100,000 AUDJPY
AUDJPY Exchange Rate: 96.553
MetaTrader Swap Formula:
(Base Amount * Short Swap Rate) / AUDJPY exchange rate) - (100,000 * 0.0078498305) / 96.553 = You pay 8.13 AUD
Advanced Trader Swap Formula:
(Base Amount * Short Swap Rate) - (100,000 * 0.0078498305) = You pay 784.98 JPY
Why interbank rates rather than benchmark rates?
Other brokers may continue to offer their overnight rates using an old method that applies benchmark rates based on interest-rate differentials between central banks. Swissquote believes in maximum transparency and our method, more so than the benchmark method - aligns itself with the market daily. The interbank swap rate further takes into account recent liquidity, market dynamics and volatility on a given currency pair.
Synthetic rollovers for easy account statements
Swissquote settles its rollovers synthetically - meaning positions are not closed and reopened overnight. Instead, a debit/credit is applied to a trader's statement as a separate line item, making for clear and easy evaluation. Swissquote applies a triple swap on Wednesday 23:00 CET to account for weekend rollovers. There are some exceptions to this rule:
- Triple swap rollovers will be applied Thursday 23:00 CET for USDCAD, USDTRY and USDRUB.
- Triple swap rollovers will be applied Friday 23:00 CET for ALLUSD, CUCUSD, CULUSD, NILUSD, PBLUSD, ZNLUSD, LCOUSD, NGCUSD, OILUSD, DAXEUR, ESXEUR and SMICHF