What Is Swap in Gold Trading?
When you hold an XAU/USD position past the daily rollover time, typically 5PM New York time, your broker applies an overnight swap charge.
Unlike currency pairs, gold does not generate interest. This means both long and short XAU/USD positions typically incur a negative swap.
Wednesday Triple Swap
On Wednesdays, most brokers apply triple swap to account for the Saturday and Sunday settlement that occurs over the weekend.
How to Minimise Swap Costs
- Trade intraday only, close all positions before 5PM NY time
- Ask your broker about Islamic (swap-free) accounts
- Factor swap into your take profit calculation