6 minute read
What is Swap in Exness? Understanding Overnight Fees
from Exness
by Exness Blog
If you're trading with Exness and have come across the term “swap,” you might be wondering what it really means. Let’s clear it up immediately: swap in Exness refers to the overnight fee (or interest) that is charged or credited to your account when you hold a trading position overnight. It's a standard concept in forex and CFD trading, and understanding how it works can help you manage your trading strategy better and avoid unnecessary losses.
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Swap Defined: What Exactly Is It?
In the context of Exness, a swap is a fee or interest that is either paid or received for holding a trading position past the daily market close — usually at 00:00 server time. This fee is based on the difference in interest rates between the two currencies in a forex pair or the borrowing cost of the underlying asset in CFDs. The swap is automatically applied to your open position.
Exness charges swaps on most instruments including forex pairs, metals, cryptocurrencies, indices, and energies. The amount of swap depends on the asset, the type of position (buy or sell), the lot size, and the number of nights the position is held.
Why Does Exness Charge Swap?
The reason swaps exist is because when you trade forex, you're essentially borrowing one currency to buy another. For example, in the EUR/USD pair, buying means you’re buying euros by selling U.S. dollars. Depending on the interest rate of the currency you're buying versus the one you're selling, you will either be credited or charged a swap.
Exness applies this mechanism through its liquidity providers. The cost or gain from this interest rate difference is then passed to the trader as a swap fee. Therefore, swap is not an arbitrary fee—it reflects real financial conditions in the market.
How Is Swap Calculated in Exness?
Exness calculates swap using a standard formula:
Swap = (lots × long or short swap rate × point size)
Lots: the number of lots you’re trading.
Swap rate: specific to the instrument and whether it's a buy (long) or sell (short) position.
Point size: the minimum price movement for the instrument.
The swap values for each instrument can be checked directly on the Exness website or on the MetaTrader platform. They are expressed in points and differ between long and short positions.
Important note: Swap is charged once per day but on Wednesdays, it's charged three times to account for the weekend when markets are closed.
Swap-Free Accounts: An Alternative on Exness
If you’re a Muslim trader or someone who prefers not to deal with interest-based fees for ethical or religious reasons, Exness offers swap-free accounts. These accounts do not charge or pay swaps for a set period on most instruments.
However, swap-free does not always mean cost-free. In some cases, Exness may apply a fixed fee after a grace period to cover the cost of holding a position. This fee is not based on interest and complies with Islamic finance principles.
You can request a swap-free account during the registration process, or if you already have an account, you can contact Exness support to make the switch.
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Instruments Affected by Swaps in Exness
While forex pairs are the most common instruments affected by swaps, Exness also applies overnight fees to other asset classes:
Metals like gold (XAU/USD), silver (XAG/USD)
Energies such as oil (WTI, Brent)
Cryptocurrencies (BTC/USD, ETH/USD)
Indices like the S&P 500 or NASDAQ
Each of these instruments has its own specific swap rate. For example, holding a long position in XAU/USD might result in a negative swap, while a short position may result in a smaller charge or even a credit.
How to Check Swap Rates in Exness
To manage your positions effectively, it’s essential to check the swap rates before holding trades overnight. You can do this in several ways:
Via MetaTrader 4 or 5 (MT4/MT5):
Right-click the symbol in the Market Watch window.
Click “Specification.”
You’ll see the long and short swap values there.
On the Exness Website:
Visit the Trading Instruments section.
Select the asset you're trading.
Check the swap rates listed under “Trading Conditions.”
Being aware of these rates will help you avoid unexpected fees, especially when planning to hold positions for multiple days.
Real-Life Example of Swap on Exness
Let’s say you open a 1-lot buy position on EUR/USD, and the long swap rate is -5.00 points.
If you hold the position overnight, you will be charged a fee of:
1 lot × -5.00 points × 10 = -50 USD.
This charge will be deducted from your balance at 00:00 server time. If you hold the trade through Wednesday night, you’ll be charged 3 times, resulting in a -150 USD fee.
If you had a swap-free account, you wouldn’t be charged this fee — at least not for the duration of the grace period.
How to Avoid or Minimize Swap Charges on Exness
Smart traders always consider swap when building strategies. Here are a few tips to help you manage or even benefit from swaps:
Close trades before the rollover time (00:00 GMT+0).
Trade assets with favorable swap conditions — some positions may actually pay you instead of charging you.
Use a swap-free account if you plan on holding trades long term.
Avoid holding positions on Wednesdays, as triple swap charges apply.
Include swap calculations into your strategy, especially for swing or position trading.
The Role of Swap in Your Trading Strategy
For scalpers or day traders, swap is largely irrelevant because they typically close all trades before the market rollover. But for swing traders and position traders, swaps can significantly impact profit or loss over time.
Let’s say you plan to hold a trade for 30 days. If the swap is -10 USD per day, that’s a total of -300 USD in fees — enough to turn a winning trade into a losing one if you don’t account for it.
On the other hand, some strategies like carry trading intentionally seek out positive swaps, aiming to earn interest by holding positions in high-interest-rate currencies against low-interest ones.
Final Thoughts: Should You Worry About Swaps in Exness?
Yes — but only if your strategy involves holding trades overnight. Swap is not a hidden fee. It’s a standard cost in the trading industry that reflects real economic mechanisms, and Exness is transparent about how and when it is applied.
If you're a short-term trader, swaps may not affect you at all. But if you’re in it for the long haul, understanding and managing swap charges can be the difference between success and failure.
By checking swap rates, choosing the right instruments, and considering a swap-free account, you can trade smarter with Exness — without letting overnight fees eat into your profits.
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