A swap (also called an overnight fee or rollover fee) is the interest charged or credited for holding a position overnight. It reflects the interest rate differential between the two currencies in a forex pair. Swaps can be positive (you earn) or negative (you pay), depending on the direction of your trade and the prevailing interest rates. Swap-free accounts are available for traders who cannot pay or receive interest.
You hold a long AUD/JPY position overnight. Since Australia has a higher interest rate than Japan, you receive a positive swap credit of $1.80. If you were short AUD/JPY, you would pay a swap fee instead.
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