Why it matters
Swap can dominate long holds, especially in leveraged accounts.
Trading use: the point is not vocabulary. The point is prediction: what changes when this shows up?
Common trap
Assuming swap is small and stable.
Example
A hold strategy slowly loses because swap is negative.
Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.
Notes
Swap is part of your edge if you hold overnight.
Quick rule
- If you see this repeatedly, you are in a different regime than your model assumes.
- Regime change usually means position size change.
- When in doubt: trade smaller, or don’t trade.