Labor Day Sale — Up To 50% Off
Definition
The total amount of swap charges or credits incurred on your trades. Swap is typically associated with forex or CFD trading where positions are held overnight.
Formula
Total Swap = Sum of Swap on All Trades
Example
Let’s say you’ve had the following swap amounts:
- Trade 1: -$10 (swap charge)
- Trade 2: +$5 (swap credit)
- Trade 3: -$8 (swap charge)
- Trade 4: +$3 (swap credit)
Your Total Swap would be: -$10 + $5 – $8 + $3 = -$10
Key Points
- Rollover Costs/Income: Swap can be either a cost or source of income depending on interest rate differentials and whether you hold long or short positions. Tracking Total Swap helps you assess its overall impact on your profitability.
