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Swap / Rollover

The interest charged or credited for holding a forex position open overnight, based on the interest-rate gap between the two currencies traded.

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A swap (or rollover) is the interest charged or credited for holding a leveraged forex position open overnight, reflecting the interest-rate differential between the two currencies in the pair. If you hold a currency with a higher interest rate against one with a lower rate, you may earn a positive swap; the reverse typically means you pay a negative swap. Many brokers charge triple the normal swap on Wednesdays to account for weekend settlement, and some offer "swap-free" Islamic accounts that comply with Sharia's prohibition on interest.

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