IB/MIB Application

Swap Rate

The amount paid or earned as a result of the differential interest rates applicable to currency pairs when a trader holds a position over night is the Swap or Rollover rate. It is calculated on daily basic at 4:59 PM/ET. For you to be subjected to swap, trade position must have been opened before 4:59 PM/ET and held open past this time. Swap rates are tripled on Wednesday at 4:59 PM/ET. Swap rate is opposite for each currency pairs and depend on either long or short. Please refer to the summary table for swap rate traded with IKOfx.

Swap rate formula:

Swap debit/credit = Current swap rate in USD per unit * lot size

Example of Swap Rate Calculation

Current swap rate for long of AUD/USD at IKOFX = 4.50 per 100,000 units
AUD/USD at 4:59 PM/ET = 0.9035
Trade volume = 1 standard lot ($100,000USD)
Swap debit/credit = 4.50/100,000 x 100,000
= $4.50 USD per day

You have earned $4.50 USD for holding 1 lot long AUD/USD through 4:59 PM/ET daily and will be tripled ($13.50 USD) by Wednesday.

Note:

  • Mini Account Swap Rates are 1/10 the size of the Standard Account Swap Rates.

For easy swap calculation, you may use the Swap Calculator from our webpage.