Swap / Rollover

A swap (or rollover) is the interest charged or credited for holding a leveraged forex position open overnight, reflecting the interest-rate differential between the two currencies in the pair. If you hold a currency with a higher interest rate against one with a lower rate, you may earn a positive swap; the reverse typically means you pay a negative swap. Many brokers charge triple the normal swap on Wednesdays to account for weekend settlement, and some offer "swap-free" Islamic accounts that comply with Sharia's prohibition on interest.