Does ForexClub have overnight fees? How is it calculated?

Overnight fees (swaps) are usually charged for holding positions overnight. Swaps are usually calculated in a following way:

1. Definition of overnight interest:

Swap refers to the interest that traders need to pay or receive for holding an open trade at the end of the trading day (usually at 21:00 GMT). This is due to the interest rate differences between different currencies involved in foreign exchange trading.

2. Calculation method:

Swap calculations are usually based on the following factors:

• Transaction size：the number of lots held (such as 1 lot, 0.1 lot, etc.).

• Interest rate difference：the difference between the benchmark interest rates of the two currencies involved.

• Leverage：borrowing money to invest in assets also affects the actual calculated amount of swaps.

3. Calculation formula:

The general calculation formula is:

Overnight interest = transaction size × interest rate difference × 1/365

Important!

• Different currency pairs may have different overnight interest rates.

• Some brokers may charge three days' interest on Wednesday evening to cover positions held over the weekend.

• The specific amount of overnight interest can be viewed on the trading platform, usually displayed in the transaction order details.