Swap points (also known as overnight fees) are an important part of transaction costs that affect traders holding overnight positions. At Exness, changes in swaps are based on interest rate differentials, market conditions, and specific trading instruments. Understanding how swaps operate, how to check them, and how to effectively manage them can make a significant difference in trading profitability.
What are swap points?
Swap refers to the fees or credits applied when holding trading positions overnight. It is calculated based on the interest rate difference between two currencies or the financing cost of a contract for difference in foreign exchange.
Key factors affecting swap rates
Interest rate difference:
- Each currency pair consists of two currencies, and their respective central bank interest rates determine whether swap fees will be charged or paid.
- Example: If the interest rate of the base currency (EUR) is higher than the quote currency (USD), a long (buy) position may result in a positive swap.
Liquidity and volatility:
- Swap rates fluctuate based on market supply and demand.
- A high volatility environment may lead to significant changes in swap rates.
Trading tools:
- Foreign exchange pairs, metals, cryptocurrencies, indices, and stocks have different swap structures.
- Foreign exchange currency pairs typically have higher swap costs due to lower liquidity.
Broker adjustment:
- Brokers add a price difference to the swap rate, which means that different brokers may have slightly different swaps on the same financial instrument.
Weekend adjustment (triple change on Wednesday):
- The foreign exchange market is closed over the weekend, but the interest rate spread for these days still applies.
- Therefore, Exness executed a triple swap on Wednesday night.
How to check swap rate in Exness
Exness provides multiple ways to query swap rates in real-time, ensuring that traders can accurately calculate their overnight holding costs.
Checking Swaps in Metatrader 4 (MT4) and Metatrader 5 (MT5)
The simplest way to directly view swap rates on the trading platform is:
- Open MT4 or MT5 and log in to your Exness trading account.
- Visit market observation (if not visible, please press Ctrl+M).
- Right click on the tool (e.g. EUR/USD) and select "Specifications".
A new window will appear displaying the exchange rate:
- Long position swap:The swap fee required to hold a buy position.
- Short Swap:The swap fee required to hold a selling position.
Tips:If the swaps on both long and short positions are negative, they are transaction costs. If one party has a forward swap, they can make money by holding the position overnight.
Check the exchange (contract specifications) on the Exness website
To obtain updated swap rates, traders can visit the official Exness website:
- Go to the Exness website and log in to your personal area.
- Navigate to "Trading" → "Contract Specifications".
- Select the trading tool you want to view.
- Scroll down to find swap rates for long and short positions.
Why use this website?
- Due to changes in market conditions, swap rates may fluctuate.
- You can obtain the latest updated data in real-time.
Check the exchange status in Exness personal area
Your Exness personal area provides a detailed breakdown of trading conditions for your specific account type:
- Log in to your Exness account through your personal area.
- Choose your trading account.
- View exchange conditions under account settings.
be careful:
- The exchange rate may vary depending on the account type.
- Professional accounts may have different swap structures.
Exness's no overnight interest (Islamic) account
Exness provides no overnight interest accounts for traders in certain regions or those who wish to avoid interest based fees.
How to operate a free turnover account:
- No swaps have been made for open positions.
- Exness may charge a fixed overnight fee based on the trading instrument, rather than a swap fee.
- Only open to traders from eligible countries (primarily Islamic regions).
How to apply for a non exchange account:
- Go to your personal area and select an account that meets the criteria.
- Check if a non exchange status is available (depending on your country of residence).
- Enable non exchange transactions.
- Confirm if additional verification needs to be provided to the Exness support team.
Important Notice:Not all tools are interchangeable. Some foreign currency pairs and commodities may still incur costs.
Exchange calculation example
Exchange can be a cost or revenue, depending on the tools and overnight positions you hold. Here are two examples that demonstrate the working principle of Exness swap fees - one is when swap fees are deducted, and the other is when traders earn positive swaps.
Hold overnight buy positions in EUR/USD
Transaction details:
- Trading variety: EUR/USD
- Position: Buy (long)
- Number of Hands: 1 lot (100000 units)
- Long position swap: -0.50 points (negative value)
- Swap short selling: +0.30 points (positive value)
calculation:
Swap= Swap rate (points) x lot size x point value
Exchange= -0.50 × 100,000 × 0.0001
Exchange= -$5 per night
- If held continuously for 3 nights, the total exchange fee is -15 US dollars.
- If the exchange is held on Wednesday night, the exchange fee for that night is three times $-15.
Conclusion:This position requires a payment of $5 per night.
Sell position in gold (XAU/USD)
Transaction details:
- Trading variety: Gold (XAU/USD)
- Position: Sell (short)
- Number of Hands: 1 hand (100 ounces)
- Swap short position: +1.25 USD (positive)
calculation:
Exchange= +1.25 × 100
Exchange= +$125 per night
Conclusion:Traders holding this short position can earn $125 per night.
How to reduce swap costs and optimize your transactions
Swap transactions may affect your profitability, but there are ways to minimize costs or even turn them into advantages. Here are some effective methods for managing exchanges:
- Towards forward swap trading - Open positions obtained through swaps rather than deductions.
- Close the position before the overnight fee period (server time 00:00) If the swap fee is high, exit before the daily fee takes effect.
- Use non exchange account If available in your region, this can eliminate overnight interest costs.
- Choose low swap instruments Some foreign exchange pairs and asset swap fees are significantly lower, which can reduce overall costs.
conclusion
For forex traders, swaps are a key cost factor. Understand Exness swap points and their query methods to ensure traders can effectively plan their strategies. By utilizing forward swaps, closing positions at the right time, or using non swap accounts, traders can optimize their trading costs and increase profitability.
Always keep up with the latest swap rates through the Exness platform or official website to avoid unexpected expenses.
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