Overnight swap in a trading journal: separating spread, commissions and financing costs

Overnight swap in a trading journal: separating spread, commissions and financing costs

Overnight swap may reduce the net result of positions held through rollover. Learn to record it correctly in an MT5 trading journal.

A holding charge is not the spread

The spread is the difference between bid and ask prices. Swap is a debit or credit that may arise when a position remains open through the broker's rollover time. Rules vary by instrument, direction and account; there is no universal rate.

Recording actual charges

Record symbol, size, direction, opening and closing times, commissions, actual booked swap and gross and net results. Use broker history and contract specifications for actual charges, not invented assumptions. A trade may be profitable before costs yet produce a smaller net result.

Process review

During review, check whether overnight holding was planned, whether estimated costs were considered before entry and whether the decision followed the process. Compare similar setups and holding periods rather than drawing conclusions from one trade.

Limits and further reading

Check currency conversion, rollover timing and any multiplied charge days. This is education, not investment advice. Explore trading risk tools and education at https://disciply.it/trading-tools/.