Overnight financing / swap fee

Overnight financing, or a swap fee, is the daily interest a broker charges for holding a leveraged position past the session close, paid to the broker. On a perpetual the equivalent is funding, paid between traders and received as often as paid; one stamp landing shows it.

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In the help centreSee how leverage and margin work on Mochatrade
  • Margin interestMargin interest is what a US broker charges, daily, on cash it lends you to buy shares. A perpetual contract has no…
  • Margin tradingMargin trading is taking a position larger than your deposit, the margin. A US broker lends you cash at interest; on a…
  • Notional valueNotional value is the full size of a position, price times quantity, whatever margin backs it: ₹50,000 of exposure on…
  • Cost of carryCost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is…
  • Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
  • Funding rateThe funding rate is the periodic payment between longs and shorts that keeps a perpetual near the real price: above…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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