Answer: Formula calculating overnight interest for Forex, share CFD and some indexes: total contract value x swap rate ÷ 360
For example: the client opens a buy order for the EURUSD currency pair, in which the swap rate is -1.78%. Meanwhile, trading the EURUSD 1 standard lot. Formula of total contract value = contract size * lot = 100000 x 1 Euro, assuming that the exchange rate from the euro to the US dollar = 1.23456, so the total contract value for EURUSD 1 lot = 100000 x 1.23456 = 123456 USD. Therefore, the overnight interest for opening the buy order 1 lot of EURUSD = 100000 x 1.23456 x (- 1.78%) ÷ 360 = -6.104 USD. The result is a negative value which Means the client has to pay the overnight interest $ 6.104 USD Therefore, overnight interest is determined by swap rates on the platform. If the swap rate is negative, the client will be charged interest. The swap rate is positive, the client will be paid interest from the company.