Calculation of Interest / Swap / Rollover / Interest to Stay

Calculation of Interest / Swap / Rollover / Interest to Stay

Calculation of Interest / Swap / Rollover / Interest to Stay
Interest / Swap / Rollover / Interest Staying the interest earned or paid traders if there are open positions exceed one day of trading. Limit one trading day is if the position is not closed until the closing time of the world Forex market, namely at the time of closing the New York Market at 1700 (New York time).

To convert New York time to your local time, please go to: http://www.timeanddate.com/worldclock/timezone.html?n=179

When trading forex, which used the actual day is 2 days ahead. Example: Trading on Thursday, then the actual day is Monday (interest calculated as 1 day). Trading on Friday, then the actual day is Tuesday (interest calculated as 1 day), and so on. While the special for Wednesday, the day actually is 3 days, ie Friday, Saturday and Sunday. (Interest is calculated 3 days). Although Saturday and Sunday closed the forex market, interest was calculated 3 days as compensation for trading off.

In the interest calculation: Traders will get a positive rate if the currency bought an interest rate greater than the borrowed

Example:
Pair USD / JPY. USD Swap Rate = 5.25%, JPY Swap Rate = 0.5%
Buy USD / JPY means a trader is buying USD by borrowing JPY. Because interest rates currency bought (USD) greater than borrowed (JPY), the trader will get an interest rate: 5.25% - 0.5% = 4.75% If a trader Sell USD / JPY (means borrowing USD and buy JPY), it will be charged for: -5.25% + 0.5% = -4.75%

Example 2:
Pair EUR / USD. Interest Rate EUR = 3.75%, USD Swap Rate = 5.25%
Buy EUR / USD means a trader buys EUR by borrowing USD. Because interest rates currency bought (EUR) is smaller than borrowed (USD), then the trader will be charged for: 3.75% - 5.25% = -1.5% If a trader Sell EUR / USD (meaning buying USD and borrow EUR) , then it will get an interest rate: -3.75% + 5.25% = 1.5%

Any Forex broker generally provides a list of interest rates (per day) for each pair is used. The list usually includes interest charged to posis Buy and Sell. (Can be in the $ or the point). If the point the trader must first convert into dollars by calculating the value per point pair in question.