Triple swap in gold trading

Triple swap is the one night a week when a position is charged three days of swap instead of one. Spot transactions settle two business days after the trade, so a position rolled on Wednesday is settled on Friday and then rolled across Saturday and Sunday. To account for those two non-trading days, platforms apply three nights of swap on Wednesday. For some instruments the triple day is Friday; for gold it is most often Wednesday, but the specification states it.

How it applies to gold trading

If the long swap on gold is −$25 per lot per night, a 0.50-lot position pays $12.50 on an ordinary night and $37.50 on triple-swap night. A swing trader planning to hold through the week should budget for seven nights of swap, not five, even though the market is closed at the weekend.

Some short-term traders close positions just before the Wednesday rollover and reopen afterwards to avoid the triple charge. That saves swap but costs a second spread and risks missing a move during the daily break, so it is a trade-off rather than a free lunch.

On the swap calculator, entering seven nights for a week-long hold, or counting the Wednesday as three, gives the realistic weekly financing cost for a gold swing trade.

A common mistake

Assuming no swap is charged for weekend days because the market is closed. The weekend is charged in advance, on the triple-swap night.

See also: Swap and rollover, Weekend gap, Swap-free account.

Frequently asked questions