Definition
Swap (overnight fee)
The financing cost or credit applied to positions held overnight, from the interest differential of the pair.
Swaps accrue per night (tripled midweek to cover the weekend) and hit the account like any other P&L — relevant to drawdown math on multi-day holds.
Swap-free ('Islamic') account variants replace swaps with fixed fees at some firms.
Related terms
General industry definitions — individual firms define terms differently in their own ToS; the decoded rulebook for each firm is the source of truth. Educational, not financial advice.