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Originally Posted by pippinainteasy
i went long 15 lots usd/yen yesterday at 1:55 pm as of 5 pm today ive collected $67.80 US.??? yesterday at 5pm i collected $16.95 which is correct for 15 lots. how come then i collected and extra $50 or so dollars for this one day.
i also opened two more separate 5 lots of usd/yen this morning each has collected $16.95 a piece????
i also went short eur/usd this morning 5 lots and that has collected $8.55 which is double what it should be.
in no way am i complaining but could someone explain why the premiums im collecting are pretty much double what they should be for the respective lot sizes.
thanks
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This is probably because the swap rate includes the weekend. This is information posted on my brokers website (I N T E R B A N K F X):
What is SWAP?
Swap is a debit or credit paid or earned as a reflection of the differences of the interest rates in the respective currency pair countries.
If you hold a currency pair through the end of the trading day and into the next trading day (5pm EST) you pay or receive the Swap.
For example, if you are long GBP/USD and US interest rates are lower than GBP interest rates you will earn a credit. If you are short the pair, you would be debited.
When you do a spot deal, the actual value date is two days forward. A deal done on Thursday is for value Monday. A deal done on Friday is value on Tuesday, and so on.On Wednesday the amount is tripled because it includes the previous weekend.