Swap fees result from the difference in interest rates between the currencies (in forex) or assets involved in the trade. A positive swap fee occurs when you earn interest for holding a position overnight.

Example:
If you hold a long position in EUR/USD, and the interest rate of the Euro (EUR) is higher than that of the U.S. Dollar (USD), the swap fee may be positive — meaning you receive a payment for keeping the position open overnight.

Positive swap fees reflect the cost or benefit of maintaining a position over time, influenced by:

• Interest rate differentials between currencies or assets
• Market liquidity and broker pricing
• Market sentiment

Traders holding positions long-term should account for swap fees, as they can impact overall profitability.