What is Overnight Fee in Forex? A Complete Guide for Uzbekistan Traders (2026)

What Exactly is an Overnight Fee?

An overnight fee, or swap, is the cost of keeping a forex position open overnight. Every forex trade involves borrowing one currency to buy another. If you buy EUR/USD, you are borrowing US dollars and buying euros. The interest rate on the borrowed currency (USD) and the interest on the purchased currency (EUR) create a net cost or gain. If the interest rate on the currency you bought is higher than the one you sold, you receive a credit; if lower, you pay a fee.

How Does It Work for Uzbekistan Traders?

For a Uzbekistan trader using a USD-denominated account, the swap is calculated in USD. For example, suppose you buy 1 standard lot (100,000 units) of USD/JPY. The US Federal Reserve rate is 5.5% and the Bank of Japan rate is 0.1%. The interest rate differential is 5.4% in favor of USD. You would receive a daily credit of approximately (100,000 × 5.4% / 365) = $14.79 per day. Conversely, if you sell USD/JPY, you would pay that amount. Most brokers display swap rates in their platform's contract specifications.

Why Does It Matter for Uzbekistan Traders?

Uzbekistan traders often face higher costs due to limited broker options and potential currency conversion fees. Overnight fees can accumulate quickly, especially on large positions or during weekends when triple swap is applied (Wednesday night for most brokers). For example, holding a 1 lot EUR/USD short position over the weekend could cost $15-$20 in swap charges. This is significant for retail traders with accounts of $500-$2,000, which is common in Uzbekistan.

Key Factors Affecting Overnight Fees

• Interest rate differential: The larger the difference, the higher the swap. Pairs involving emerging market currencies like USD/TRY have very high swaps.
• Position direction: Long (buy) positions may earn or pay depending on the pair. Short (sell) positions have the opposite effect.
• Broker markups: Some brokers add a markup to swaps, increasing costs. Always check swap rates before trading.
• Day of the week: Wednesday rollover includes triple swap to account for weekend settlement.

For Uzbekistan traders, overnight fees have unique implications due to local financial conditions. The Central Bank of Uzbekistan's policy rate is around 14-15% (as of 2026-2026), which is much higher than US or European rates. While most retail brokers do not offer UZS pairs, traders dealing with USD-based pairs still face swap costs that can eat into profits. Many Uzbekistan traders use USDT (Tether) for deposits via crypto exchanges, which adds an extra layer of cost when converting to USD in the trading account. Payment methods like Bank Transfer and Skrill are also common, but they may involve fees that compound with swap charges. The local financial authority (likely the Central Bank of Uzbekistan or the National Agency for Project Management) does not specifically regulate forex swaps, but international brokers operating in Uzbekistan must comply with their home regulations. Traders should choose brokers that are transparent about swap rates and offer swap-free accounts if needed.

1. Identify the rollover time in Uzbekistan
   Rollover occurs at 5:00 PM New York time, which is 2:00 AM Tashkent time the next day (UZT, UTC+5). Positions held past this time incur overnight fees.
2. Check swap rates in your trading platform
   Open the contract specifications for each pair. Look for 'Swap Long' and 'Swap Short' values in USD or points. For example, in MetaTrader 4, right-click the symbol and select 'Specification'.
3. Calculate potential swap costs for your trade size
   Use the formula: (Swap rate in points × Pip value × Number of lots). For a 0.1 lot EUR/USD trade with a swap of -5 points, the daily cost is 5 × $1 × 0.1 = $0.50 per day.
4. Plan your trading strategy around swap costs
   If you are a swing trader holding positions for weeks, add swap costs to your risk management. Consider using swap-free accounts if available from your broker, or close positions before rollover to avoid fees.

Overnight fees are similar to holding costs in other financial markets. In stock trading, you might pay margin interest if you borrow money to buy shares. In commodities, you may pay storage costs. In forex, the swap is the primary holding cost. Unlike spreads or commissions, which are one-time costs, swap is recurring. For Uzbekistan traders, this makes swap a critical factor when comparing brokers. A broker with a 0.1 pip spread but high swap is worse for long-term traders than a broker with 0.5 pip spread but zero swap. Always calculate the total cost of a trade including spreads, commissions, and swaps over your expected holding period.

When you open a forex trade, you are essentially borrowing one currency to buy another. The overnight fee is the net interest cost of this borrowing. For example, if you buy USD/JPY, you are borrowing Japanese yen (low interest) to buy US dollars (high interest). The broker charges you the difference between the two interest rates, adjusted for their markup. This fee is applied automatically at 5:00 PM New York time (2:00 AM Tashkent time). For a Uzbekistan trader with a $1,000 account, holding a 0.1 lot EUR/USD short position might cost $0.30 per night. Over a month, that's $9, which is nearly 1% of your account. The fee is deducted from your account balance and appears in your trade history as 'Swap' or 'Rollover'. It is calculated daily, including weekends (via triple swap on Wednesday).

Example 1: Long EUR/USD
You buy 0.5 lots (50,000 units) of EUR/USD. The swap rate for long positions is -4.5 points per day. Each point is worth $5 for 0.5 lots (standard lot pip value is $10 per lot). Daily cost = 4.5 × $5 = $22.50. Over 5 days, that's $112.50. If you hold through Wednesday, triple swap applies: 4.5 × 3 × $5 = $67.50 for that night.

Example 2: Short USD/JPY
You sell 1 lot of USD/JPY. The swap rate for short positions is +2.3 points per day (you receive a credit). Each point is worth $10. Daily credit = 2.3 × $10 = $23. Over 10 days, you earn $230. However, if the interest rate differential changes, the credit could become a cost.

Example 3: Holding over weekend
You hold a 0.2 lot GBP/USD long position from Tuesday to Friday. On Wednesday, triple swap is applied. If the swap rate is -3.2 points, the cost for Wednesday is 3.2 × 3 × $2 = $19.20 (where $2 is pip value for 0.2 lots). Total for the week: 3.2 × $2 (Tue) + $19.20 (Wed) + 3.2 × $2 (Thu) + 3.2 × $2 (Fri) = $6.40 + $19.20 + $6.40 + $6.40 = $38.40.

In Uzbekistan, forex trading is regulated by the Central Bank of Uzbekistan and the National Agency for Project Management (NAPM). However, most retail forex brokers serving Uzbekistan traders are licensed in international jurisdictions like the FCA (UK), CySEC (Cyprus), or the FSA (St. Vincent). These regulators require brokers to disclose swap rates and ensure fair treatment of clients. For Uzbekistan traders, this means you should verify your broker's regulatory status before depositing funds. A regulated broker must follow strict rules on swap calculations and cannot arbitrarily increase fees. The local financial authority does not directly oversee forex swaps, but international regulations provide a safety net. Always check if the broker offers negative balance protection and segregated accounts, which protect your funds from broker insolvency. For a list of regulated brokers accepting Uzbekistan clients, visit comparebroker.io.

• Always check swap rates before trading: Different brokers have different swap rates. Compare them on comparebroker.io to find the most cost-effective broker for Uzbekistan traders.
• Avoid holding positions over Wednesday night: Triple swap on Wednesday can significantly increase costs. Close positions before 2:00 AM Tashkent time on Thursday if possible.
• Use swap-free accounts for long-term trades: If you plan to hold positions for weeks, consider opening an Islamic account with your broker. Many international brokers offer this option to Uzbekistan clients.
• Factor swap into your risk-reward ratio: For a trade with a 1:2 risk-reward ratio, a $10 daily swap over 5 days reduces your net profit by $50. Adjust your stop-loss and take-profit levels accordingly.
• Monitor central bank interest rate decisions: Changes in US Fed, ECB, or Bank of Japan rates directly affect swap rates. Uzbekistan traders should follow economic calendars to anticipate swap changes.

Understanding overnight fees is essential for any Uzbekistan trader looking to trade forex profitably. By knowing how swaps work, when they are applied, and how to calculate them, you can make informed decisions that protect your capital. Start by checking swap rates for your preferred currency pairs on your broker's platform. If you plan to hold positions long-term, consider swap-free accounts or brokers with competitive swap rates. Use comparebroker.io to compare brokers and find the best trading conditions for Uzbekistan residents. Remember: successful trading is not just about winning trades, but also about minimizing costs like overnight fees. Take control of your trading costs today and trade smarter.