A swap is an overnight financing adjustment that may be charged or credited when you hold a position past the applicable daily swap time.
At Ultima Markets, the swap depends on the instrument, whether your position is long or short, the published swap rate, your position size, and the number of nights the position is held.
Why is swap applied?
When a CFD position remains open through the applicable daily swap time, an overnight financing adjustment may be applied.
The swap rate is determined for each instrument and may differ between buy and sell positions. Swap rates may also change over time.
Can Swap Be Charged or Credited?
Yes. Depending on the applicable swap rate, swap may either be deducted from or credited to your account.
- Positive swap rate: Swap is credited to your account.
- Negative swap rate: Swap is deducted from your account.
The rates for buy and sell positions can differ. Therefore, holding both a buy and sell position on the same instrument does not necessarily offset the swap.
When it is applied
Swap is applied automatically when a position remains open at the applicable daily swap time. (past 00:00 server time)
If you open and close a position before the applicable swap time, overnight swap is normally not applied. The applicable time is based on server time and may differ from midnight in your local time zone.
Additional swap may apply when a position is held across certain days. For more information, see “Why Was I Charged Triple Swap?”
How it is calculated
There are three general calculation methods for swap, depending on the instrument:
- In currency:
- Swap Rate × Lot Size × Number of Nights Held
- In points:
- Swap Rate × Contract Size × 10^(-Digits) × Lot Size × Number of Nights Held
- In percentage:
- Swap Rate ÷ 100 ÷ 360 × Contract Size × EOD Price × Number of Nights Held
The calculation method depends on the instrument.
Where can I check the swap rate?
You can view the current swap rates directly on MT4 or MT5:
- Open Market Watch.
- Right-click the instrument you are interested in.
- Select Specification or Properties.
- Check the Swap Long and Swap Short rates.
The rates shown on the platform are the applicable rates for the instrument and may change over time
Swap and other charges
Swap is separate from other trading costs:
- Spread: The difference between the Bid and Ask prices.
- Commission: A separate charge that may apply depending on your account type and product.
- Swap: An overnight financing charge or credit applied to eligible positions.
Swap does not apply to swap-free (Islamic) accounts, which are subject to an administration fee instead.
