How Can Financing Costs Impact Your Trading Strategy?

Why It Matters

Overnight financing alters the cost or return of holding currency positions and can materially affect trade profitability and strategy, especially for multi-day or carry trades. Traders who monitor these fees can better manage costs and select positions that align with their risk and carry expectations.

Summary

The video explains how overnight financing (swap) charges work in FX trading using OANDA’s platform. OANDA provides a Financing Fees tab that lists per-instrument long and short financing in US dollars for a standard 100,000-unit (1.00 lot) position, showing whether holding a position overnight results in a debit or a credit. Financing can be positive or negative depending on the currency pair and direction—for example, short EUR/AUD can produce a credit. The presenter emphasizes this tool as an easy reference to assess holding costs for different pairs and positions.

Original Description

Forex financing costs and overnight swaps can be extremely confusing, no matter how experienced a trader you are.

This video is here to help you learn how financing costs can impact your trading strategy, and how they can possibly even form a pivotal part of how you deliver it.

Download the OANDA app for iPhone, Android and tablet devices here - https://bit.ly/4eNOFjA

Open an OANDA account - https://bit.ly/4sWRt1r