Calculating Swaps/Financing Fee

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Written by Afterprime
Updated 10 months ago

How to Calculate 

FX/Metals: pip value* x swap rate in points (converted to account currency). Pip value is calculated in the back ("terms" or "counter") currency. Pip value refers to the second last digit quoted. 

Example: 0.24 lots AUDUSD (pip value = USD$2.40). Swap rate: 8.34. Calculation: USD$2.40 (pip value) X 0.834 (swap rate) = USD$2.00 (rounded from USD$2.0016) 

CFD: lot size x swap rate (charged in underlying product currency)Example: NAS100, long swap = -0.89 Calculation: 1 lot X 0.89 = USD89 cents 

Crypto: lots x contract Size x end of day price x swap long or short % / 100 / 360Example: BTCUSD, end of day price USD10,000. Swap = -30.98 Calculation: 0.5 lots x 1 x 10,000 USD x -30.98 / 100 / 360 = -4.30 USD

Equities: lot size x contract size x end-of-day price x swap / 100 / 360
Example: e.g. 200 lot short APPL.NAS; end-of-day price USD 119.19; short swap: -3.31.
1) APPL.NAS is priced in USD (see Currency column in table)
2) Contract size of all Equities is 1. Meaning: 1 lot = 1 x quoted price.
3) Swap/financing calculation: 200 (lots traded) x 1 (contract size) x USD 119.19 (closing price) x -3.31 (swap rate) / 100 (convert to percentage) / 360 (days) = USD -$ 2.19

Note RE Crypto and equities: 360 is not a typographical error (i.e. that it should say 365) for total days per year, it is the standard. Crypto is divided by 100 to achieve a decimal. 

*Calculating Pip valuePip value calculation (priced in the terms/back currency) = contract size X position size X price change (FX: 0.00010). 

To find Contract Size (MT4): right click any product in Market Watch, then select Specification. See "Contract Size." 

E.g.All FX: 100,000 (units per lot) X position size X pips (0.00010)All Equity index: 1 (contract per lot) X position size X price changeEnergy/Oils: 1000 (contracts per lot) X position size X price changeXAUUSD: 100 (ounces per lot) X position size X price change, etc. 

Pip calculator via website: https://www.afterprime.com/pip-calculator/

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