Direct answer
A worked example of Positive Swap is a transparent, numbers-based scenario that shows how an account could receive a net positive overnight financing amount. It must state assumptions such as the assumed interest-rate differential, the instrument’s contract size, the number of days charged, and whether the provider applies any additional conversion or adjustments.
Mechanism and definition
In many forex accounts, the “swap” (also called overnight financing) reflects the interest differential between the two currencies in the quoted pair when positions are held beyond a certain cut-off time. If, under the provider’s method, the interest differential implies a net credit to the long side you hold, that outcome is often labeled “positive swap.”
A worked example is useful because it separates stable mechanics (overnight holding, a net credit/charge, and unit conversions) from variable conditions (provider-specific swap calculations, market rates, and exact rollover timing). Even when the concept is stable, the actual amount is not, because the inputs used by a provider can change.
Worked example (with explicit assumptions)
Below is a simplified numerical scenario. It is not based on any live market data.
Assumptions
- You open a long position in a currency pair at some notional exposure (you can treat this as a fixed contract notional).
- The provider calculates overnight financing for the position and, for this scenario, the net swap comes out positive.
- Swap is charged/credited once per “swap day,” and in this scenario there is 1 charged day.
- The provider’s posted financing rate for this exact instrument (after any internal adjustments) can be represented as an annualized differential converted to a daily figure.
- Notional exposure is fixed and equals $10,000 (for the position value used in the swap calculation).
- The assumed daily swap rate (after conversion by the provider’s rules) equals 0.10% per day.
Calculation
- Daily swap credit = notional × daily swap rate
- Daily swap credit = $10,000 × 0.10% = $10,000 × 0.001 = $10.00 credited
Result interpretation
- Under these assumptions, holding the position overnight produces a net positive credit.
- If you close the position before the relevant rollover time, you would not realize that overnight credit (this is a timing limitation, not a guarantee).
What makes this a “worked” example
Every number above is an assumption you can replace with the provider’s posted inputs for the same instrument and account settings. The “worked” part is that you can reproduce the arithmetic and see exactly which assumptions drive the sign and magnitude.
Limitations and risks (material failure modes)
- Swap amounts change: Even if the concept is “interest differential,” the inputs used to compute swap can change as market rates move and as the provider updates financing tables.
- Rollover timing matters: Swap is typically tied to a specific cut-off. If the timing differs from your expectation (including special rollover rules), the credited amount can be different or not applied.
- Day count can differ: Some periods may effectively charge/credit multiple days (for example around non-standard market days). If your assumption is “1 day” but the provider applies more, totals can be higher or lower.
- Account and instrument specifics: Swap may depend on the exact contract specifications (instrument denomination, leverage/account type settings, and whether the provider uses a standardized method). Two accounts can show different swap outcomes for the same general currency exposure.
- Sign flips are possible: Positive swap is conditional on the provider’s method and the prevailing differential. If the differential reverses, the same position direction could move from credit to charge.
Verification and next question
To verify a positive swap claim independently, you need the provider’s official swap/financing terms for the exact instrument and your position direction, including the rollover timing and how many days are applied. Then you can rerun the same arithmetic using the provider’s posted rate inputs.
If you want, share the currency pair and the kind of position you mean (long or short), and I can rewrite the worked example with a clearer template for which provider inputs must be plugged in—without using any live prices or promising outcomes.