The setup: what one lot actually costs to hold
- 1 lot EURUSD = 100,000 EUR. At an EURUSD rate of 1.16, the USD notional is 100,000 × 1.16 = $116,000 — this is the amount the swap is charged on.
- The raw input is the interest-rate differential: EUR at 3.0%, USD at 5.0%, a differential of 2.0% per annum.
- On top of the raw differential every broker books its own adjustment — here 0.65% p.a. against you. That markup is pure broker margin and differs wildly between brokers, which is exactly why swap rates belong in any broker comparison.
- The holding period in this example is 5 days; swap is charged per night held, so 5 nights of position means 5 × the nightly rate.
Long EURUSD (buy EUR, sell USD): the carry works against you
- Long means you earn EUR interest and pay USD interest: 3.0% − 5.0% = −2.0% per annum.
- After the broker charge the net carry is −2.0% − 0.65% = −2.65% per annum.
- The cost over 5 days: $116,000 × 2.65% × 5/365 = $42.11 — paid purely for holding, regardless of what price does.
- That is roughly −$8.42 per night, or about −$252.66 per month on a single lot.
Short EURUSD (sell EUR, buy USD): the carry works for you
- Short means you earn USD interest and pay EUR interest: 5.0% − 3.0% = +2.0% per annum.
- After the broker charge the net carry is +2.0% − 0.65% = +1.35% per annum.
- The credit over 5 days: $116,000 × 1.35% × 5/365 = $21.45 — a positive swap, money received for holding.
- That is about +$4.29 per night, or roughly +$128.72 per month on a single lot. In practice brokers often retain part of this credit, so expect the real number to be smaller.
Interactive swap cost calculator
Change the rates, the markup or the holding period and watch the bill move. Defaults are the worked example above: 1 lot EURUSD at 1.16, EUR 3.0% vs USD 5.0%, a 0.65% broker adjustment and 5 nights held.
USD notional
$116,000
1 lot(s) × 100,000 EUR × 1.16
Long carry
-2.65% p.a.
EUR − USD − markup
Short carry
1.35% p.a.
USD − EUR − markup
| Position | EUR rate | USD rate | Net carry rate | 5-day carry |
|---|---|---|---|---|
| Long 1 lot EURUSD | 3.0% | 5.0% | -2.65% | -$42.11 |
| Short 1 lot EURUSD | 3.0% | 5.0% | 1.35% | +$21.45 |
| Difference | +$63.56 | |||
Per day
Per month (30 days)
Illustrative carry math on the notional (rate × days/365). Your broker books the actual swap on the converted position value and applies its own markup on top of the interbank differential — check the live swap rates in your platform before trading. In practice, brokers often retain part of the positive short-side credit, so the real number is usually smaller.
Practice Carry-FreeWhy direction alone is worth $381 a month per lot
- The 5-day difference between long and short is $42.11 + $21.45 = $63.56 — on the same notional, in the same market, with zero price movement.
- Per day the spread between the two sides is −$8.42 vs +$4.29. Scaled to a 30-day month: −$252.66 vs +$128.72, a difference of $381.38 per standard lot.
- A trader who is long EURUSD for a month starts $252.66 in the hole before the first pip; a trader on the short side starts $128.72 ahead. Same chart, same setup — opposite economics.
- On a 3-lot position the monthly difference exceeds $1,100. Put the swap column next to the spread column in any broker comparison — multi-day forex strategies live or die on it.
What this means for your broker choice
- The 0.65% markup is the broker-controlled part of the bill. At 0.25% instead, the long side would cost 2.25% instead of 2.65% — about $36 less per lot per month. Markups range from roughly 0.2% to well over 1.0% across brokers.
- Some brokers display swap rates only inside the platform, in points, where the annualised percentage is hard to reconstruct. Always convert to a % p.a. on the notional before comparing.
- Triple swap: most brokers book three nights of swap on Wednesday to cover the weekend — a fact that surprises traders holding through mid-week.
- Compare the broker markup with the other cost lines — spreads, ticket fees, financing — in the real broker fees breakdown and the broker fee savings calculator, then rehearse the resulting holding discipline in the simulator.
Practice this — risk-free
The WallStreet Billionaire simulator runs your trades against real historical charts with a virtual balance. Hold a forex position for several candles in the simulator and feel the multi-day commitment — the swap math on this page is what that hold would cost you on a live account.
Can you win?Turn practice into prize money
Same charts, same 15 trades, shared starting balance — the winner takes 8× their buy-in in real money, 2nd gets 3×, 3rd gets 2×. Start with a free 5-trade demo run, or buy into a €5, €25 or €50 division.
Ready for the real market?
Practiced until your numbers are green? Open a live account with a regulated broker — and start small.
Frequently asked questions
What is a swap in forex trading?+
A swap is the interest-rate differential between the two currencies in your pair, booked every night you hold a position. Long EURUSD means you earn EUR interest and pay USD interest; short is the reverse. The broker adds its own markup on top of the raw differential — that markup is the broker-controlled part of the cost.
Why is the swap negative when I buy EURUSD?+
Because you hold the lower-yielding currency and pay the higher-yielding one. With EUR at 3.0% and USD at 5.0%, long EURUSD earns 3.0% and pays 5.0% — a raw −2.0% p.a., or −2.65% after the 0.65% broker markup. On 1 lot ($116,000 notional) that is about −$8.42 per night.
How much does holding 1 lot EURUSD cost per month?+
In this example: long EURUSD roughly −$252.66 per month, short EURUSD roughly +$128.72 per month (a positive credit). The difference between the two directions is about $381 per standard lot per month — before any price movement occurs.
Can I avoid swap costs entirely?+
Yes — by closing positions before the daily rollover (intraday trading), since swap is only booked on overnight holds. The trade-off: intraday trading raises trade count, and spreads and commissions are paid per trade. Whether that is cheaper depends on your strategy — test both paces in the broker fee savings calculator.
Do all brokers charge the same swap?+
No. The raw interest differential is market-wide, but the broker markup on top differs from broker to broker — commonly between roughly 0.2% and over 1.0% p.a. That spread of markups is exactly what makes swap rates a broker-comparison criterion, alongside spreads, commissions and financing rates.
Last updated: September 2026. Written and maintained by the WallStreet Billionaire research team, the same traders and engineers who build the simulator every guide on this site points to.
Data & methodology: pricing figures are illustrative estimates based on the published Saxo rate card as of August 2026 — spreads, commissions, CFD financing (8% p.a.) and FX swap (rate differential ± 0.65% markup). Broker pricing changes; verify current rates with the broker before acting on any number here.
Every guide pairs written strategy analysis with an interactive calculator so you can test the claim with your own numbers, then rehearse it risk-free in the simulator. Educational content only — not financial advice. See our imprint.