What's the formula of calculating swap?

Created at 17 Mar 2017, 13:09
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depot051

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Joined 04.11.2016

What's the formula of calculating swap?
17 Mar 2017, 13:09

Information for WTI shows the short swap is 1.1, I guess it's charged per lot 1000 Barrels.

I caculate the swap of shorting 20 Barrels: 1.1*20/1000 = 0.022 but the position shows me that the swap is 0.22

As something goes wrong, how to calculate it?

@depot051
Replies

huguh
19 Mar 2017, 18:59

I cant answer your question, but I think swap is more complicated than that. I dont think thats precisely a formula for it. It envolves other variants, some kind of interest over night, something like that, I dont know...  

@huguh

kricka
19 Mar 2017, 21:45

Swap and risk management

Swap is not really a reality until it is actually carried out. If there is a history of swap it can maybe be calculated based on that history. Still as "huguh" says there are so many parameters that need to be filled to be able to do that. Regarding risk management, it is of interest and should be included if positions are in place. Market Order 3.0 has swap included in the overall risk management and more information and download can be had at this link: Market Order 3.0 

@kricka

depot051
20 Mar 2017, 10:57

I got the answer from customer support. It's not that complex. The unit of swap is shown by pips, not quote currency.

The correct formula is:

swap * 10^(-pip_position) * quantity

1.1 * 10^(-2) * 20 = 0.22

@depot051
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