Understanding the Swap Calculator
Proprietary trading involves strict risk management parameters. The swap calculator is designed to help funded traders calculate their metrics with precision before executing a trade in the live market, safeguarding their accounts from accidental breaches.
Frequently Asked Questions
What is a swap in forex trading?
A swap (or rollover) is the interest paid or earned for holding a trading position open overnight. It is based on the interest rate differential between the two currencies in a pair. Your broker charges or credits this amount daily at 5 PM EST.
What is Triple Swap Wednesday?
Most brokers charge triple swap on Wednesday nights to account for the weekend settlement period (T+2). This means holding a trade over Wednesday costs 3x the normal overnight rate, even though the market is open. Always factor this into swing trade planning.
How do swap fees affect prop firm traders?
Swap fees are deducted from your account equity and count towards your drawdown. Large swap costs on swing trades can silently eat into your drawdown buffer, potentially causing a breach if not calculated in advance.
Where do I find swap rates for my broker?
In MetaTrader, right-click any instrument in Market Watch and select 'Specification'. The swap long and swap short values are listed in points. Enter these values into the calculator above.