In short
- Charged on positions open at the daily rollover.
- Based on a benchmark rate ± broker mark-up, applied to position value.
- One weekday carries three days of financing.
The basic formula
Daily financing ≈ position value × (benchmark rate ± mark-up) ÷ 365
For forex, the relevant rate reflects the interest differential between the two currencies, plus or minus the broker's charge — which is why longs and shorts on the same pair have different swap rates.
Example: index CFD
You hold a £20,000 long UK 100 position. With a benchmark rate of 4% and a 2.5% mark-up, financing is 6.5% a year:
£20,000 × 6.5% ÷ 365 ≈ £3.56 per night — about £107 over a month.
Where to find swap rates
- MetaTrader: right-click Market Watch › Specification
- Broker websites: financing or market-information pages
- Proprietary platforms: instrument information panels
Reducing financing costs
- Close day trades before the rollover.
- For multi-week spread bets, compare daily bets with futures bets, which build financing into the spread.
- Avoid holding over the triple-swap day if a trade is marginal.
- Use smaller positions on long-term trades.
Frequently asked questions
When is overnight financing charged?
At the daily rollover, around 22:00 UK time, on positions still open.
Why is financing charged three times on one day?
Forex positions held over a particular weekday rollover (often Wednesday) are charged for the weekend as well, so that day carries three days' financing.
CFDs and spread bets are complex instruments and come with a high risk of losing money rapidly due to leverage. Most retail investor accounts lose money when trading these products. You should consider whether you understand how they work and whether you can afford to take the high risk of losing your money.