Wednesday Triple Swap: Why Rollover Charges Three Nights

[FXS Prop Desk]

Holding a spot FX position over Wednesday's rollover usually triggers three days of swap instead of one. It surprises many traders the first time.

Why it happens:

• Spot FX settles two business days after the trade (T+2).
• A position rolled over on Wednesday night moves its value date from Friday to the following Monday, skipping Saturday and Sunday.
• The two weekend days of interest are therefore charged, or paid, on Wednesday night.

Practical consequences:

• Positive carry trades receive three days of interest on Wednesday.
• Negative carry trades pay three days.
• Some brokers apply the triple charge on a different day for certain instruments, such as indices or metals.

Checking the swap schedule in the symbol specification avoids surprises.

Do you plan around the Wednesday swap?

[Fairman]

Some brokers apply the triple charge on a different day for certain instruments, such as indices or metals.

Holidays are the other thing that moves it. Because the charge follows value dates, a bank holiday in either currency's country can add an extra day of swap on a different night than usual, or shift the triple to another day that week. Around Christmas, New Year and US holidays it's common to see a double or triple charge on a Tuesday or Thursday. Brokers usually post a notice, but it's easy to miss. For positive carry that's a pleasant surprise, for negative carry on a larger position it can be a noticeable hit, so checking the swap notice in holiday weeks is worth the minute it takes. Index CFDs often apply the triple on Friday instead, since they follow cash market settlement.

[Shadow Trader]

I treat Wednesday rollover as a scheduled cost the same way I treat a red data print. On AUDJPY and NZDJPY the triple night can eat a full scalp target if I leave a runner hanging past the broker cut.

Fairman is right that holidays move the day. Last December my broker posted the triple on Thursday for USDJPY while metals still charged on Wednesday, and I only caught it because I checked the symbol swap table that morning.

img_13712_r1.png (32.15 KiB) Viewed 3 times

The illustration shows a one lot AUDJPY long across a normal Wednesday versus a holiday shifted week. The extra two nights flipped a small overnight hold from flat to clearly negative after costs.

Do you ever hold through the triple on purpose for the credit side? For me it is almost always a flatten decision unless the thesis needs the weekend value date.