The moment is ringed. An invented chart, drawn to show the shape. Not market data.
Also searched asovernight swap forex · rollover fee · triple swap wednesday · weekend risk
What you see
- A swap line on the position after the rollover.
- On one day of the week, usually Wednesday, the swap is applied three times to cover the weekend.
- Spreads are wider for a time around the rollover.
Why it happens
The swap is small on one night and adds up over weeks. A position held for a long time can gain or lose as much from swaps as from price.
What traders check next
- The swap for that instrument, long and short. They differ and both can be negative.
- Which day carries the triple swap.
- Whether the position will be open over a weekend or a holiday, when a gap is possible.
Where people go wrong
- Ignoring the swap on a trade meant to last weeks.
- Assuming the swap is paid to you because one currency has the higher rate: costs are included.
- Leaving a tight stop in place through the rollover.
Questions people ask
- Why is the swap tripled on one day?
- Trades settle two business days later, so a position held past that day’s rollover is carried across the weekend and charged for three days.
- Is a swap always a cost?
- No. It can be a credit, but after costs it is more often a charge, and it can be negative in both directions.
The words on this page
An explanation for study. It is not advice, a recommendation or a forecast, and a pattern or a situation described here says nothing certain about what a price will do next.