The cost of a forex position does not always end with its spread and commission. Holding an OTC forex or CFD position beyond the broker’s rollover cut-off can create financing or swap adjustments under the account’s terms.
Separate spot-rate movement from account adjustment
A currency pair can move in your chosen direction while the net result is reduced by financing charges. The broker’s swap figures may depend on pair, position direction, contract size, calendar and account type. The exact computation should come from the provider’s current specification.
Illustrative calculation
Assume a position gains $120 from price movement but incurs $4 per charged overnight period for 20 periods and $10 in other trading costs. The illustrative net is $120 − $80 − $10 = $30. The $4 figure is not a live market rate; it simply shows why holding time matters.
What to verify in a tariff
Check rollover time zone, when weekend or holiday adjustments apply, and whether direction-specific swaps differ. Some accounts advertise different swap arrangements, including products described as swap-free; read whether other administration charges apply.
- Symbol and position direction.
- Charge currency and conversion to account currency.
- Number of charged overnight periods.
- Changes to published rates over time.
Relevance for copy trading
A strategy with long average holding periods can incur costs that a chart of gross trade returns does not show. Followers entering at different dates may also have different financing exposure. Reviews should present net estimates and source dates, not just advertised spreads.
Copy trading fee & return scenario calculator
Change assumptions yourself. This free calculator uses transparent arithmetic; it does not predict a strategy’s future results.
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