How to Calculate Rollovers or Swaps in Forex Trading
How to Calculate Rollovers or Swaps in Forex Trading Rollover is the interest you will receive or pay after setting up at least overnight a currency pair that is being traded, the amount of which is determined by the volume and interest rate of the bank. So this rollover or swap can increase or decrease your forex trading capital.
When you open a trading position for example Open Buy AUD / USD you are actually buying Australian dollars and selling US dollars. When you buy, you will get a purchase interest and when you sell you will incur costs . And the amount of rollover or swap is the amount of interest on the currency purchased plus the currency sold.
In the example, Trader A opens an Open Buy AUD / USD position as much as 10K (10000) at a cost of $ 8000 and will get a Rollover Buy of $ 0.67 after staying overnight with an Australian bank interest rate of 3% per year and American bank 0.25% per year.
Now the calculation example in the table above can explain to you how rollover or swap in forex trading is calculated. And please note that the interest rate is issued by the central bank of the country and can change at any time according to the policy.