How to Calculate Swap Points: Daily and Holding-Period Profit or Loss in Yen
Looking at swap points but still not sure how much you will actually gain or lose?
In short, multiply the daily swap per lot by your lot size and the number of days credited, then convert to yen at USDJPY if it is quoted in USD. Count the extra days for triple-swap Wednesdays by adding them to the number of days.
This article gives the formula and two worked examples. By the end, you will be able to estimate swap in yen before you open a position.
In short: swap in yen = points x lots x days credited
- Daily swap = swap points (per lot, per day) x lot size
- Total for the holding period = daily swap x days credited
- If the points are quoted in USD, finally multiply by USDJPY to convert to yen
- Calculate long and short separately. A negative value is a payment
How swap points work and how to read them
Swap points are the amounts received or paid on positions held overnight, arising from the interest rate difference between currencies. The sign is often opposite for long and short, and some instruments charge a payment on both sides.
The values are listed in the broker's instrument specifications and in the instrument information in your trading platform. They change from day to day, so check the latest value before you calculate.
- Look at the long and short values separately
- First check whether the unit is points, USD or yen
- Check the currency amount per lot (100,000 units is standard)
- Values can differ by account type and instrument, even at the same broker
Swap formula and converting to yen at USDJPY
| What you want to find | Formula |
|---|---|
| Daily swap (USD) | Swap (per lot, per day) x lot size |
| Days credited | Days held + number of Wednesdays in the period x 2 |
| Total for the holding period (USD) | Daily swap x days credited |
| Yen conversion | Total (USD) x USDJPY rate |
- 1
Pick the values from the specifications
Check the swap per lot, per day for your direction, long or short.
- 2
Multiply by lot size
At 0.1 lots the amount is one tenth, and at 0.5 lots it is half.
- 3
Multiply by days credited
Add the extra Wednesday days to the days held, then multiply by that number.
- 4
Convert to yen
If it is quoted in USD, multiply by the USDJPY rate at that time.
How to count triple-swap Wednesdays and other credit days
Markets are closed on Saturday and Sunday, so many brokers credit the weekend's swap in one lump on a particular day. Many brokers credit 3 days of swap on Wednesday, and this day is called the triple-swap day.
On Wednesday, 2 extra days are added on top of the usual 1 day, so multiply the number of Wednesdays in the period by 2 and add it to the days.
- Some brokers and instruments credit the triple on a different day, such as Friday
- Holidays or changes to trading hours can shift the credit day
- It does not apply to trades that do not cross the rollover (the daily date change)
Swap calculation examples: holding a long and a short
| Item | Example 1: receiving (long) | Example 2: paying (short) |
|---|---|---|
| Swap (per lot, per day) | +5 USD | -4 USD |
| Lot size | 0.5 lots | 0.1 lots |
| Days held / number of Wednesdays | 30 days / 4 | 10 days / 2 |
| Days credited | 30 + 4 x 2 = 38 days | 10 + 2 x 2 = 14 days |
| Total (USD) | 5 x 0.5 x 38 = 95 USD | -4 x 0.1 x 14 = -5.6 USD |
| Yen conversion (¥150) | approx. ¥14,250 | approx. -¥840 |
Enter the swap points, lot size and days held to see long and short totals in yen.
Use the swap calculatorFAQ
Q.How do I calculate swap points?
Multiply the swap per lot, per day by your lot size and the number of days credited. If it is quoted in USD, multiply by the USDJPY rate to convert to yen. Calculate long and short separately.
Q.How do I include triple-swap Wednesdays in the calculation?
Multiply the number of Wednesdays in the period by 2 and add it to the days held. The day of the triple credit differs by broker and instrument, so check the instrument specifications before counting.
Q.What happens when swap is negative?
It becomes a payment rather than a receipt, and your account balance falls day by day. It may be small on short trades, but it adds up the longer you hold. Check the specifications before you hold a position.
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
