When trading London Gold, in addition to spreads and commissions, holding duration is another key factor affecting overall costs. Orders closed within the same trading day generally do not require much consideration of overnight charges. However, if an order spans the platform’s daily settlement period, you need to understand the applicable overnight interest rates.

1. What Is Gold Swap?

Simply put, fees tied to trade direction and holding period may be incurred if a position remains open past the daily settlement cutoff.

For the same 1 lot of London Gold, total costs can differ between one trader who closes the position the same day and another who keeps the position open for multiple days.

This explains why medium and long-term holders pay close attention to swap rates in addition to spreads.

2. Are Buy and Sell Rates Identical?

Not necessarily.

Lucky Gold currently applies two separate annual overnight rates for London Gold and London Silver:

· Annual rate for buy positions: 1.25%

· Annual rate for sell positions: 0.75%

Even with the same lot size and holding period, overnight charges may vary depending on whether the position is a buy or sell order.

3. Main Factors Affecting Swap

The actual calculation usually takes all of the following into account:

· Trading instrument

· Buy or sell direction

· Actual traded lot size

· Holding duration

· Applicable overnight rate at that time

Knowing only the 1.25% or 0.75% figure is not enough to work out the final charge.

A more sensible approach is to confirm position size first, then calculate based on holding days and prevailing parameters.

4. When Does Overnight Calculation Start?

Lucky Gold has a fixed daily settlement window. During Daylight Saving Time, settlement runs from 05:00 to 06:00 from Tuesday to Friday. During Winter Time, settlement runs from 06:00 to 07:00 from Tuesday to Friday.

Positions kept open across this settlement trigger will incur relevant holding fees.

If you originally planned a short-term trade but still hold the order close to settlement time, review whether your trading plan needs adjustment in advance.

5. Why Long-Term Holders Should Pay Extra Attention to Swap

The daily charge may appear low, yet total costs build up as the holding period extends.

A position held for several days has a noticeably different cost profile compared to one held for only a few hours.

Therefore, when comparing gold trading platforms, traders who hold positions over multiple days should evaluate swap rates alongside spreads.

Lucky Gold lists the buy annual rate of 1.25% and sell annual rate of 0.75% directly within trading parameters. Traders may factor holding time into cost planning before placing orders.

How to Calculate Gold Swap Clearly

Follow this logic: Confirm trade direction first, then lot size and holding period, and finally compute using the corresponding overnight rate.

For same-day closed orders, focus mainly on spreads and execution prices. For positions planned to stay open over multiple days, overnight charges must be included in trading costs beforehand.