I have been trading for years and have always treated swaps like a necessary evil. Kind of like a tax or a commission. Obviously, the longer you hold trades, the more the swaps can impact you. More often than not, they are in the negative. Can anyone advise me how to calculate swaps in advance so that they could be considered when making trades? Is there a way to determine swap rates? Perhaps a formula?
Your broker should have swap/rollover data posted on his site for each pair.
No worries. Use this position sizing EA which also includes a figure the for daily Swap based on your lot size.
Enter Trade (2).zip (1.9 KB)
Alternatively. if you use MT4, simple Expert:
enum D {Long = 0, Short = 1};
extern D Direction;// Long or Short
extern double LotSize;// Enter your lot size
void OnInit()
{
double PnL1Pip1Lot = MarketInfo(_Symbol,MODE_TICKVALUE)*10;
double LSR = SymbolInfoDouble(_Symbol,SYMBOL_SWAP_LONG) * 0.1;// Long Swap Rate
double SSR = SymbolInfoDouble(**_Symbol,**SYMBOL_SWAP_SHORT) * 0.1;// Short Swap Rate
// Daily Swap Rate for trade (DSR) - Formula
if (Direction == 0)
double DSR = (LSR) x (PnL1Pip1Lot) x (LotSize);
else
double DSR = (SSR) x (PnL1Pip1Lot) x (LotSize);
Comment(DSR);
}
use “_Symbol” or “Null”. But should be an underscore before Symbol which doesn’t display above for some reason.
You can find information about swaps in forex pairs specifications on the website of your broker. The information what you need is financial points, for example, if EURCAD short financial points are -4.5 then you will be charged 4.5 USD for holding 1 lot EURCAD short position overnight. Same you can calculate for a long position on EURCAD (check financial points for a long position). Note that triple swaps are credited/debited on Wednesday instead of weekends.
Yes, I use FXDD and they have swap calculators on their site as do most forex brokers. I usually don’t concern myself too much with swap rates (although I probably should) because I treat it like the cost of doing business in this field! It would be smart to look at the swap implications in advance of any pair you want to trade. If that trade becomes a long term one, then you could be down a ton of money. Point in case, if you look at some of the USD/JPY trades I opened back in 2013 that I am still holding, I am down over 33k on 4 trades – SWAP ALONE! Not a good situation for sure. Forex is meant for short-term trading and I often think the stock market is the same due to the volatility there too.