Pricing & Costs
Intermediate
Swap (Rollover)
Also called: rollover, overnight interest, carry
The interest credit or debit applied when a position is held overnight — reflects interest rate differentials between the two currencies.
Definition
When you hold a position past the 17:00 New York rollover, the broker pays or charges you the differential between the two currencies’ interbank rates, minus a spread (usually negative for both sides).
Long the higher-yielding currency = positive swap; short it = negative. Strategy-relevant for carry trades and any position held more than a few days.
Example
AUD/JPY at 5% AUD rate vs 0.1% JPY rate. Long AUD/JPY 1 lot, holding overnight → ~ $13 credit per day, before broker markup.