Many beginners expect swap points to be money they simply receive. Then they open their account and find a negative number. That surprise is common.
Swap is the interest adjustment applied when you hold a position overnight. Depending on whether you buy or sell, it can be received or paid (XS official site, checked 21 October 2026). This guide explains how swap works, triple-swap days, swap-free accounts and how to estimate the cost.
Conclusion: swap points can be received or paid
Swap amounts change from day to day. All amounts in this guide are made-up examples. Check the real figures in the symbol specification on your trading platform.
Note: FX and CFD trading can lose some or all of your funds.
- Swap is an interest adjustment added to or deducted from your account when you carry a position to the next day
- The amount depends on the interest rate gap between the two currencies, and buy and sell are set separately
- Positive means you receive; negative means you pay. The sign can change with direction on the same symbol
- Many brokers have a day when three days of swap are applied at once (the triple-swap day)
- A swap-free account is a mechanism that does not charge swap, under conditions
How swap points work: rollover and the interest rate gap
If you close a position on the same day you open it, no swap arises. Once you carry it to the next day, a process called rollover takes place.
The XS official page describes the swap rate as the interest adjustment that arises when you carry a position to the next day. It is set by the interest rate gap between the two countries of the currencies traded, and it can be a gain or a loss (checked 21 October 2026).
The official MT5 help also lists "Swap long" for buy positions and "Swap short" for sell positions as separate symbol settings (MetaQuotes official help, checked 21 October 2026).
For the wider picture of trading costs, see the beginner guide on spreads and commissions on this site.
- Step 1: Carry the position. You still hold it after the daily cut-off time, which differs by broker
- Step 2: Rollover happens. The position moves to the next business day, and the interest difference is calculated with it
- Step 3: Swap is added or deducted. Swap points are credited or debited according to the swap value in the symbol specification
When do swap points turn negative?
Swap turns negative when your direction is to buy the lower-interest currency and sell the higher-interest one. The opposite direction tends to be positive.
The XS official page uses a USD/JPY buy as its example. If the US dollar rate is higher than the yen rate, a buy position receives positive swap. If it is lower, you pay negative swap (checked 21 October 2026).
Note: both directions can be negative. A broker sets the amount by adding its own adjustment to the interest rate gap. So some symbols cost you swap whether you buy or sell. Do not assume that buying always pays you.
- Buy, bought currency has the higher interest rate: tends to be a receipt (positive)
- Buy, bought currency has the lower interest rate: tends to be a payment (negative)
- Sell, sold currency has the higher interest rate: tends to be a payment (negative)
- Sell, sold currency has the lower interest rate: tends to be a receipt (positive)
- These rows show the idea of the rate gap, as organised by this site. Always check the symbol specification for the real value
What is a triple-swap day? The weekday differs by broker and symbol
The FX market closes on weekends, but interest keeps accruing. So on one day of the week, three days of swap are applied at once. That is the triple-swap day.
The official MT5 help has a setting that fixes the swap multiplier for each weekday. In its example, swap is tripled when you carry a position from Wednesday to Thursday (MetaQuotes official help, checked 21 October 2026).
Key point: crossing the triple-swap day means about 7 days of swap in a week. If three days are applied on Wednesday and you carry the position every day from Monday to Friday, you get 7 days of swap in total (Monday 1, Tuesday 1, Wednesday 3, Thursday 1, Friday 1). With negative swap, holding through Wednesday makes the payment larger.
Note: other brokers are not covered here. Many brokers apply three days on Wednesday for FX, but this differs by broker and symbol. Check each broker's symbol specification.
- XS three-day rollover day (XS official swap rate page, checked 21 October 2026): foreign exchange and metals: Wednesday
- XS three-day rollover day: indices, energies, cryptocurrencies and stocks: Friday
- Even on the XS official page, the wording differs for some symbols such as cryptocurrencies, so check the symbol specification on your platform
Swap calculation and the risk of exchange losses when holding for swap
Total swap is roughly the daily amount multiplied by the number of days held. The figures below are made-up examples that show how holding longer builds up the amount. Real amounts are not shown here.
Example table (simple calculation without the triple-swap day): +100 yen per day (receipt) gives +700 yen over 7 days, +3,000 yen over 30 days and +9,000 yen over 90 days. -100 yen per day (payment) gives -700 yen, -3,000 yen and -9,000 yen. In real trading the amount changes with the symbol, lot size and the daily swap value.
Positive swap looks attractive, but it is a small amount each day. Gains and losses from exchange rate moves can be large and arrive at once.
Example with made-up numbers: cumulative swap +3,000 yen, settlement loss from rate moves -10,000 yen, total -7,000 yen. Even if you receive swap, a larger exchange loss makes the total a loss. Swap values can also be changed.
Note: in long holds, exchange losses can exceed swap gains. With high leverage, unrealised losses can leave you short of margin and trigger a stop out. This guide does not cover whether any particular currency pair is favourable. See the beginner guide on leverage and stop out on this site.
- Step 1: Read the swap value in the symbol specification, for buy and sell. Check whether the unit is points or currency
- Step 2: Multiply by your lot size. Check whether the value is per 1 lot and what the calculation method is, then convert to your lots
- Step 3: Multiply by days held, and count the triple-swap day as three days if you cross it
What is a swap-free account? Conditions and cautions
A swap-free account does not charge swap when you carry positions. The XS official page says no swap or rollover fee is charged, and you neither pay nor receive interest (checked 21 October 2026).
Swap does not stay at zero forever, though. At XS, each symbol has a grace period (the number of days swap is waived). If you hold beyond it, swap is added or deducted.
Note: the symbols below are only some of those covered. XS says it may change grace periods at any time. For actual days, rely on the display on your trading platform and the terms.
For details, see the column on XS swap-free accounts on this site, which covers eligible products and grace periods. Conditions for swap-free or Islamic accounts at other brokers differ by broker. Check each broker's official page and terms before choosing an account.
- XS swap-free grace period (XS official swap-free page, checked 21 October 2026): EURUSD and GBPUSD: 10 days
- USDJPY and similar: 2 days
- Gold (XAUUSD): 5 days
- Indices: 1 day
- Applied automatically to all live accounts except demo accounts, with no extra fee or wider spread
- Beyond the grace period, normal swap applies
- Trades suspected of swap abuse may be cancelled and profits forfeited
Tax on swap points and a swap check before you trade
Swap from offshore forex is generally treated as miscellaneous income, the same as settlement profit and loss. How unrealised gains and losses on open positions are recognised may differ by broker. Confirm the final treatment with the tax office or a tax accountant. See the column on overseas forex taxes on this site.
Account types can change swap conditions as well as spreads and commissions. When you compare accounts, add whether you carry positions overnight to your criteria. See the column on account types and how to choose on this site.
- Offshore forex swap is generally treated as miscellaneous income, like settlement profit and loss
- When open gains and losses are recognised may differ by broker
- Confirm the final treatment with the tax office or a tax accountant
- I checked the buy and sell swap values for my symbol in the symbol specification
- I checked which weekday is the triple-swap day for that symbol
- I checked whether swap-free applies and what the grace period is
- I estimated how many days I will carry positions and calculated total swap
- I considered cases where exchange losses exceed swap gains
Frequently asked questions
Q. What are swap points in forex?
A. Swap points are an interest adjustment added to or deducted from your account when you carry a position to the next day. They are based on the interest rate gap between the two currencies traded. Positive means a receipt and negative means a payment (XS official site, checked 21 October 2026).
Q. Do you receive swap points with offshore forex?
A. It depends on direction and symbol. Some symbols pay you and others charge you. Buy and sell values are set separately, so check the symbol specification before trading.
Q. Why are my swap points negative?
A. Your direction is buying the lower-interest currency and selling the higher-interest one. A broker's adjustment can also make both buy and sell negative on some symbols.
Q. What is a triple-swap day?
A. It is the day when three days of swap are applied at once. Many brokers do this on Wednesday for FX, but it differs by broker and symbol. At XS, it is Wednesday for foreign exchange and metals, and Friday for indices, energies, cryptocurrencies and stocks (checked 21 October 2026). Check each broker's symbol specification.
Q. Is a swap-free account really free of all swap?
A. Not always. At XS, swap is waived only within the grace period for each symbol, and normal swap applies beyond it. Conditions may also change.
Q. Is tax charged on swap points?
A. Swap is generally treated as miscellaneous income, the same as settlement profit and loss. Confirm the details with the tax office or a tax accountant.
Sources and conditions
FX Textbook is edited from official platform documentation, broker-published information and applicable terms where available. Account conditions, services and rules can change. Confirm the current terms in the broker's registration flow before you act.
FX Textbook is an independent information site, not a broker or provider of personal investment advice. Forex and CFDs involve risk. You may lose some or all of your invested capital. No trading result is guaranteed.
NEXT STEP
Checked the swap conditions? Now compare brokers.
Trading conditions by account type and the features of listed brokers are organised in one list. Compare them according to whether you carry positions overnight.