I can't get my head around rollover interest charges, anyone care to explain. At babypips.com :
"Interest is paid on the currency that is borrowed, and earned on the one that is bought. If a client is buying a currency with a higher interest rate than the one he/she is borrowing, the net differential will be positive (i.e. USD/JPY) - and the client will earn funds as a result."
So if I sell USD/JPY, without having any USD, then there will be rollover interest charges if I don't buy back USD/JPY in the same day?
On a separate note, for intraday selling / buying on margin, will there be any interest payment required? since we are using borrowed money from the broker (correct me if i am wrong).
"Interest is paid on the currency that is borrowed, and earned on the one that is bought. If a client is buying a currency with a higher interest rate than the one he/she is borrowing, the net differential will be positive (i.e. USD/JPY) - and the client will earn funds as a result."
So if I sell USD/JPY, without having any USD, then there will be rollover interest charges if I don't buy back USD/JPY in the same day?
On a separate note, for intraday selling / buying on margin, will there be any interest payment required? since we are using borrowed money from the broker (correct me if i am wrong).