This article provides a clear explanation of ThreeTrader's swap point system, including its rules, a list of swap points for each currency pair, calculation methods, and tips for successful trading
With ThreeTrader, when trading currency pairs or CFD products, you can receive "swap points" based on interest rate differences simply by holding a position
On the other hand, depending on the currency combination and the direction of the position, swaps can sometimes be negative, so it's important to understand this correctly
Contents
- 1 ThreeTrader Swap Points
- 2 ThreeTrader Swap Point List
- 2.1 List of swap points for major currency pairs (USD/JPY, EUR/USD, etc.)
- 2.2 List of swap points for minor currency pairs (e.g., AUD/NZD)
- 2.3 List of swap points for high-interest currency pairs (ZAR/JPY, MXN/JPY, TRY/JPY, etc.)
- 2.4 List of swap points for precious metal CFDs (e.g., XAU/USD, XAG/USD)
- 2.5 List of swap points for stock index CFDs
- 2.6 List of swap points for energy CFDs
- 3 ThreeTrader's swap calculation method and examples
- 4 Tips and precautions for swap trading with ThreeTrader
- 5 Frequently Asked Questions about Swap Points in ThreeTrader
- 6 summary
ThreeTrader Swap Points
The basics of swap points in ThreeTrader are summarized in the following three points for easy understanding
- Swap points are generated by the interest rate difference between currencies
- The time and day of the week when swaps are applied (Thursdays are for 3 days)
- Points to note regarding swaps when using hedging strategies (both long and short positions)
With ThreeTrader, understanding the swap point system and accrual rules helps prevent unnecessary costs and makes it easier to stabilize profits
Swap points are generated by the interest rate difference between currencies
Swap points are generated by the interest rate difference between the two currencies that make up a currency pair
Buying a currency with a high interest rate and selling a currency with a low interest rate results in a positive swap, while the reverse results in a negative swap
ThreeTrader calculates swaps daily based on this interest rate difference and automatically applies them to your open positions
For example, in the USD/JPY pair, a high interest rate on the US dollar will result in a positive swap on a long position, but a rise in the yen's interest rate could result in a negative swap
Swaps can be both a cost and a profit for long-term holdings, so it's important to keep track of interest rate trends for each currency
The time and day of the week when swaps are applied (Thursdays are for 3 days)
With ThreeTrader, swap points are credited at the end of trading each business day (0:00 server time)
The system is designed to reflect changes at 7:00 AM Japan time (6:00 AM during winter time)
However, since Thursday spans the weekend, three days' worth of swaps are added at once. This is because swaps are incurred even though trading is closed on Saturdays and Sundays
If you hold a position overnight on Thursday without knowing this rule, you may end up paying a lot of negative swap fees
When trading with the aim of earning swap points, it is important to be aware of the days and times when these points are credited
Points to note regarding swaps when using hedging strategies (both long and short positions)
ThreeTrader allows you to simultaneously hold both buy and sell positions (hedging) for the same currency pair .
However, since swap points are incurred for both buying and selling, the net result may end up being a net loss
Furthermore, be aware that engaging in hedging across separate accounts or with different brokers may be considered "arbitrage trading" aimed at profiting from swap differences
As a general rule, hedging across multiple accounts is prohibited and may result in penalties such as trade cancellation or account freezing
ThreeTrader Swap Point List
Here, we present a table listing the swap points for ThreeTrader as of the time of writing this article
- List of swap points for major currency pairs (USD/JPY, EUR/USD, etc.)
- List of swap points for minor currency pairs (e.g., AUD/NZD)
- List of swap points for high-interest currency pairs (ZAR/JPY, MXN/JPY, TRY/JPY, etc.)
- List of swap points for precious metal CFDs (e.g., XAU/USD, XAG/USD)
- List of swap points for stock index CFDs
- List of swap points for energy CFDs
Please note that this article also includes the yen equivalent of the swap points per lot, based on the exchange rate at the time of writing
List of swap points for major currency pairs (USD/JPY, EUR/USD, etc.)
The swap points for the major currency pairs handled by ThreeTrader are as follows:
List of swap points for major currency pairs
| Major currency pairs | Long swap | Long swap (in yen) | Short swap | Short swap (in yen) |
|---|---|---|---|---|
| USD/JPY (US Dollar/Japanese Yen) | 11 | 1,100 yen | -25.67 | -2,567 yen |
| EURUSD ( Euro/US Dollar) | -7.1 | -1,118 yen | 2.28 | 359 yen |
| GBP/USD (British Pound/US Dollar) | -2.13 | -336 yen | -3.62 | -570 yen |
| AUDUSD ( Australian Dollar/US Dollar) | -2.16 | -340 yen | -1.52 | -240 yen |
| NZDUSD ( New Zealand Dollar/US Dollar) | -1.95 | -307 yen | -1.5 | -237 yen |
| USD/CAD ( US Dollar/Canadian Dollar) | 1.96 | 215 yen | -8.21 | -899 yen |
| USD/CHF ( US Dollar/Swiss Franc) | 6.02 | 1,047 yen | -12.5 | -2,173 yen |
| EUR/JPY ( Euro/Japanese Yen) | 7.11 | 711 yen | -19.35 | -1,935 yen |
| GBP/JPY (British Pound/Japanese Yen) | 14.32 | 1,432 yen | -33.6 | -3,360 yen |
| AUD/JPY ( Australian Dollar/Japanese Yen) | 5.65 | 565 yen | -14.8 | -1,480 yen |
| NZDJPY ( New Zealand Dollar/Japanese Yen) | 6.87 | 687 yen | -15.22 | -1,522 yen |
| CAD/JPY (Canadian Dollar/Japanese Yen) | 6.28 | 628 yen | -15.21 | -1,521 yen |
| CHFJPY Swiss Franc/Japanese Yen | -3.4 | -340 yen | -8.15 | -815 yen |
| SGDJPY Singapore Dollar / Japanese Yen | 3.69 | 369 yen | -13.9 | -1,390 yen |
Among ThreeTrader's major currency pairs, swap points for currencies involving the yen, such as USD/JPY and GBP/JPY, are particularly noteworthy
The buy swap is "11 (approximately 1,100 yen)" for USD/JPY and even higher for GBP/JPY at "14.32 (approximately 1,432 yen)," which is close to the value of high-interest currencies
On the other hand, dollar-denominated pairs such as the euro-dollar and Australian dollar-US dollar mainly have negative swap rates, so caution is advised when holding them long-term
Cross-currency pairs such as EUR/JPY, AUD/JPY, and NZD/JPY also offer stable buy swaps, making them suitable for trades aimed at profiting from positive swaps
Generally speaking, positions selling yen (long positions) tend to yield positive swap points, while positions buying yen (sell positions) tend to result in larger negative swap points
List of swap points for minor currency pairs (e.g., AUD/NZD)
The swap points for minor currency pairs traded on ThreeTrader are as follows:
List of swap points for minor currency pairs
| Minor currency pairs | Long swap | Long swap (in yen) | Short swap | Short swap (in yen) |
|---|---|---|---|---|
| USD/CNH US Dollar/Chinese Yuan | -72.98 | -1,570 yen | -76.36 | -1,642 yen |
| USDCZK ( US Dollar/Czech Coronavirus) | -30.4 | -1,969 yen | -210.25 | -13,615 yen |
| USD/DKK ( US Dollar/Danish Krone) | -2.53 | -56 yen | -77.08 | -1,686 yen |
| USD/HKD US Dollar / Hong Kong Dollar | -49.56 | -1,004 yen | -42 | -851 yen |
| USD/NOK ( US Dollar/Norwegian Krone) | -22.36 | -310 yen | -51.1 | -708 yen |
| USDSEK ( US Dollar/Swedish Krona) | 6.83 | 98 yen | -93.85 | -1,336 yen |
| EURCNH Euro/Chinese Yuan | -117.76 | -2,532 yen | -60.25 | -1,296 yen |
| EURCZK Euro/Czech Corona | -180.31 | -11,676 yen | -132.65 | -8,590 yen |
| EURHKD Euro/Hong Kong Dollar | -101.05 | -2,046 yen | -14.22 | -288 yen |
| EURNOK ( Euro/Norwegian Krone) | -86.68 | -12,000 yen | -19.34 | -2,678 yen |
| EURSEK ( Euro) / Swedish Krona | -52.8 | -752 yen | -42.18 | -601 yen |
| GBPNOK ( Pound/Norwegian Krone) | -27.98 | -3,874 yen | -93.01 | -12,876 yen |
| GBPSEK ( Pound/Swedish Krona) | 5.86 | 84 yen | -135.79 | -1,933 yen |
| AUDCNH Australian Dollar / Chinese Yuan | -50.41 | -1,084 yen | -63.43 | -1,364 yen |
| NZDSEK ( New Zealand Dollar/Swedish Krona) | -7.62 | -109 yen | -122.4 | -1,742 yen |
| NOKSEK Norwegian Krone/Swedish Krona | -5.74 | -82 yen | -11.42 | -163 yen |
On ThreeTrader, minor currency pairs generally have negative swap rates
Pairs combining the euro or US dollar with Nordic currencies (Norwegian krone and Swedish krona) incur particularly high swap costs, at approximately -12,000 yen for EURNOK and approximately -3,874 yen for GBPNOK, making them unsuitable for long-term holding
On the other hand, there are pairs like USDSEK (US dollar/Swedish krona) and GBPSEK (British pound/Swedish krona) where the buy swap is slightly positive
Furthermore, USDCNH (US dollar/Chinese yuan) and EURCNH (Euro/Chinese yuan) tend to experience losses in either direction, making them suitable for short-term trading
Overall, ThreeTrader's minor currency pairs are more suited to trading strategies that prioritize market volatility over those focused on swap profits
List of swap points for high-interest currency pairs (ZAR/JPY, MXN/JPY, TRY/JPY, etc.)
The swap points for high-interest currency pairs handled by ThreeTrader are as follows:
List of swap points for high-interest currency pairs
| High-interest currency pairs | Long swap | Long swap (in yen) | Short swap | Short swap (in yen) |
|---|---|---|---|---|
| USD/HUF ( US Dollar/Hungarian Forint) | -65.21 | -2,587 yen | 3.53 | 141 yen |
| USD/MXN ( US Dollar/Mexican Peso) | -1213.46 | -9,172 yen | 70.95 | 537 yen |
| USDTRY ( US Dollar/Turkish Lira) | -5791.57 | -25,761 yen | 825.86 | 3,674 yen |
| USD/ZAR (US Dollar/South African Rand) | -420.14 | -3,512 yen | 30.2 | 253 yen |
| EURHUF Euro/Hungarian Forint | -63.77 | -2,530 yen | 3.21 | 128 yen |
| EURTRY ( Euro/Turkish Lira) | -5917.45 | -26,321 yen | 840.26 | 3,738 yen |
| AUDZAR ( Australian Dollar/South African Rand) | -344.45 | -2,879 yen | 29.2 | 245 yen |
| CHFHUF Swiss Franc / Hungarian Forint | -87.87 | -3,486 yen | 11.22 | 445 yen |
| CHFZAR Swiss Franc / South African Rand | -603.94 | -5,048 yen | 62.4 | 522 yen |
ThreeTrader's high-interest currency pairs often have very large swap point differences, making them suitable for investment strategies that focus on interest rate differentials
In particular, the swap points for the Turkish Lira (USDTRY/EURTRY) are outstanding, with swap points for short positions being at a high level of around 3,000 to 3,700 yen
On the other hand, long positions result in significant losses, so if you make a mistake in direction, the cost burden will increase sharply
Mexican pesos (USDMXN) and South African rand (USDZAR, AUDZAR, CHFZAR) also maintain relatively high swap rates, making them currencies where stable swap income can be expected by holding long-term short positions
The Hungarian Forint (USDHUF, EURHUF, CHFHUF) has a slightly smaller swap rate, but it is still sufficiently high compared to major currencies, making it suitable for medium-term investments focused on swaps
Overall, ThreeTrader's high-interest currency pairs are structured in a way that makes it easy to earn positive swap points when selling
List of swap points for precious metal CFDs (e.g., XAU/USD, XAG/USD)
The swap points for precious metal CFDs traded on ThreeTrader are as follows:
List of swap points for precious metal CFDs
| Precious metal CFD | Long swap | Long swap (in yen) | Short swap | Short swap (in yen) |
|---|---|---|---|---|
| XAUUSD Gold/US Dollar | -36.5 | -5,745 yen | 18.1 | 2,849 yen |
| XAGUSD Silver/US Dollar | -4.98 | -784 yen | 2.53 | 399 yen |
| XPTUSD Platinum/USD | -17.85 | -2,810 yen | 6.55 | 1,031 yen |
With ThreeTrader's precious metals CFDs, there is a general tendency for negative swaps to be applied to buy positions and positive swaps to be applied to sell positions
Gold (XAUUSD) in particular has a relatively large negative swap of around -5,700 yen, so it's important to note that costs are likely to be incurred if you hold it long-term
On the other hand, a short position in gold comes with a positive swap of approximately +2,800 yen, so it is possible to operate while receiving swap during a downtrend
Silver (XAGUSD) and platinum (XPTUSD) show a similar trend, with losses for buy orders and gains for sell orders
List of swap points for stock index CFDs
The swap points for stock index CFDs handled by ThreeTrader are as follows:
List of swap points for stock index CFDs
| Stock index CFDs | Long swap | Long swap (in yen) | Short swap | Short swap (in yen) |
|---|---|---|---|---|
JPN225 Nikkei | -2.03 | -21 yen | -1.88 | -19 yen |
| US 30 Dow Jones Industrial Average | -7.89 | -1,242 yen | 2.53 | 399 yen |
| US500 S&P500 | -10.88 | -172 yen | 2.65 | 42 yen |
| NAS100 (Nasdaq 100) | -3.71 | -584 yen | 1.36 | 215 yen |
| EUSTX50 Eurostock 50 | -0.76 | -124 yen | 0.12 | 20 yen |
| UK100 ( United Kingdom 100) | -1.65 | -326 yen | 0.55 | 109 yen |
| GER40 Germany 40 | -2.85 | -465 yen | 0.87 | 142 yen |
| FRA40 France 40 | -1.32 | -216 yen | 0.25 | 41 yen |
| AUS200 (Australia 200) | -1.55 | -152 yen | 0.22 | 22 yen |
| CHCUSD FTSE China A50 | -135.21 | -21,280 yen | 8.85 | 1,393 yen |
| HK50 Hong Kong Hang Seng | -3.85 | -78 yen | 1.12 | 23 yen |
| HSCHKD Hang Seng China Enterprises Index | -133.21 | -2,697 yen | 30.45 | 617 yen |
| NETH25 Netherlands 25 | -13.25 | -2,161 yen | 3.21 | 524 yen |
| SGCSGD Singapore 30 | -4.95 | -572 yen | 0.89 | 103 yen |
| SWI20 Swiss 20 | -85.88 | -150 yen | -29.31 | -51 yen |
| TW88 Taiwan 88 | -17.52 | -2,758 yen | -0.05 | -8 yen |
| US2000 Russell 2000 | -42.32 | -6,661 yen | 16.22 | 2,553 yen |
| USIDX US Dollar Index | -0.55 | -9 yen | -8.87 | -140 yen |
| VIX VIX Fear Index | -5.5 | -866 yen | -1.32 | -208 yen |
With ThreeTrader's stock index CFDs, the cost and profit trends are clearly divided depending on the direction of the swap
In many indices, long positions incur negative swaps, while short positions incur positive swaps, meaning that in some cases, short-term selling trades can result in receiving swap points
In particular, the sell swap rates for the Dow Jones Industrial Average (US30) and the Nasdaq (NAS100) are set relatively high at +399 yen and +215 yen, respectively
On the other hand, the buy swap is significantly negative, so caution is advised when holding the position long-term
Furthermore, the FTSE China A50 (CHCUSD) and Hang Seng China Enterprises Index (HSCHKD) have large swap fluctuations, and the cost of long positions is particularly high, making them suitable for trading that aims to profit from short-term price movements
Overall, ThreeTrader's stock index CFDs are easier to profit from when selling
List of swap points for energy CFDs
The swap points for energy CFDs handled by ThreeTrader are as follows:
List of swap points for energy CFDs
| Energy CFD | Long swap | Long swap (in yen) | Short swap | Short swap (in yen) |
|---|---|---|---|---|
| XTIUSD WTI Crude Oil/US Dollar | 0.21 | 34 yen | -1.98 | -312 yen |
| XBRUSD Brent Crude Oil/US Dollar | 1.02 | 161 yen | -2.17 | -342 yen |
ThreeTrader's energy CFDs offer two crude oil instruments: WTI crude oil and Brent crude oil
Both positions have a small positive swap for buy positions and a negative swap for sell positions
The buy swap for WTI crude oil (XTIUSD) is approximately +34 yen, and for Brent crude oil (XBRUSD) it is approximately +161 yen, both at relatively moderate levels
For short positions, the swap effects were -312 yen and -342 yen respectively, clearly showing that the impact of the swap differs depending on the direction
Energy CFDs are highly volatile and are primarily used for short-term trading aimed at profiting from price movements. However, ThreeTrader keeps swap costs relatively low, making it a suitable platform for swing trading as well
ThreeTrader's swap calculation method and examples
In ThreeTrader, swap points are automatically added or subtracted based on the daily interest rate difference
- A simple explanation of the swap calculation formula
- Examples of swap earnings and costs per holding period
Understanding the mechanism makes it easier to determine how long to hold a position and how much swap profit to expect
Let's look at them in order
A simple explanation of the swap calculation formula
In ThreeTrader, swaps are calculated using the following formula:
Swap points (profit/loss currency) = (Number of lots held × Swap rate × Number of days held)
Swap rates vary depending on the currency pair and can be viewed on ThreeTrader's MT4 or MT5 platform
If you hold 1 lot (basically 100,000 units of currency) for one day, and the swap rate is "10", then a swap equivalent to 10 units will be incurred
Additionally, since "three days' worth" of points, including the weekend's points, are awarded all at once on Thursdays, it's important to take this day into consideration when calculating
Examples of swap earnings and costs per holding period
Let's take a look at the swap earnings and costs when you actually hold a position on ThreeTrader
For example, if the buy swap for USDJPY (US dollar/Japanese yen) is +11 and the sell swap is -25.67, holding 1 lot (100,000 units of currency) would result in the following:
| Holding period | Buy position (+11) | Sell position (-25.67) |
|---|---|---|
| Day 1 | Approximately +1,100 yen | Approximately -2,567 yen |
| 3 days | Approximately +3,300 yen | Approximately -7,701 yen |
| 7th | Approximately +7,700 yen | Approximately -18,000 yen |
Tips and precautions for swap trading with ThreeTrader
Here, we will explain the following four points to keep in mind when using ThreeTrader to trade for swap points
- Trading with the aim of profiting from swaps has both advantages and risks
- Be mindful of negative swaps to keep costs down
- Understand the risks of swap changes and aim for stable investment
- The decision should be based on the total cost, including spreads and fees
Since swaps are automatically added and subtracted daily, differences in trading direction and holding period significantly impact profits
Trading with the aim of profiting from swaps has both advantages and risks
The biggest advantage of swap trading is that you can receive swaps simply by holding a position
By choosing currencies with interest rate differentials, you can accumulate profits even if the market doesn't fluctuate significantly
However, if the exchange rate moves in the opposite direction, you could incur losses that exceed the swap profits
High-interest rate currencies, in particular, tend to be highly volatile and can experience significant declines in a short period, so caution is advised
Be mindful of negative swaps to keep costs down
It's important to be aware that swap points aren't always positive; they can often be negative
Negative swaps are deducted as a cost each time you hold a position, so the longer you hold it, the greater the burden becomes
To minimize negative swaps, it's important to choose currency pairs with favorable swap rates and aim to close positions as quickly as possible
Also, remember to check the 3-day swap on Thursday to avoid unnecessary costs
Understand the risks of swap changes and aim for stable investment
ThreeTrader's swap rates are not fixed and may change depending on interest rate conditions and market movements
In particular, when the central bank's policy interest rate changes, swap values can fluctuate significantly within a few days
If you aim for stable swap trading, important to check the latest swap rates daily on ThreeTrader's MT4/MT5 platform to be prepared for sudden fluctuations .
The decision should be based on the total cost, including spreads and fees
When engaging in swap trading, it's important to consider the "total cost," which includes not only the swap amount but also the spread and transaction fees
If the spread is wide, you start with a negative balance at the time of entry, so even if you have swap profits, you may end up with an overall loss
ThreeTrader's spreads and fees differ between ECN accounts (RAW Zero accounts) and STP accounts (Pure Spread accounts), so be sure to consider the account type when trading with swaps
Especially with larger lot sizes, the costs from spreads and swap points become extremely high, making cost management crucial
Frequently Asked Questions about Swap Points in ThreeTrader
summary
ThreeTrader's swap points are added or subtracted daily based on the interest rate difference between currencies
Major currency pairs have relatively stable swap rates, while larger differences can be seen with high-interest currencies and precious metal CFDs
When aiming to profit from swap trading, it is important to hold positions in a direction that generates positive swaps, avoid periods with negative swaps, and manage overall costs, including spreads and fees
