Accrual
Interest or costs that accumulate on an open position daily before they are paid or charged.
Quick answer
Accrual is the daily build-up of interest or costs on an open position, paid or charged at rollover.
Definition
Accrual is interest or costs that build up on an open position every day it stays open, usually settled at rollover or when the position closes. It is how holding costs are counted rather than charged all at once. Currency traders see it as the daily swap or rollover figure on their account.
How It Works
- Interest accumulates each day a position stays open
- It settles at rollover or when you close the trade
- Long and short sides can pay or receive, depending on the pair
Trading Tips
1
Check the swap figure before holding through a rollover
2
Factor accrual into the cost of swing and position trades
3
A small daily figure compounds fast on leveraged size
Related Terms
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