BUY & SELL both carrying a negative swap. Is it possible?

To the best of my knowledge if the GBP has a higher interest rate (0.5%) and the the JPY (0.1%) then a positive swap should be given if you BUY GBPJPY. However, if you sell you earn the negative interest. Here is a rate calculator http://fxtrade.oanda.com/tools/fxcal...lculator.shtml

Can anyone explain how IBFX can charge a negative swap for BOTH a BUY on the GBPJPY and a SELL on the GBPJPY?


To me it seems like they have some hidden commissions AGAIN?


And also is it really possible to have a two pip slip on 5 out of 7 entries when you are placing pending orders (in non-news but liquid London trading session times)?



Below is a copy for what they charge each night per trading lot......... And you will notice that they have both buy and sell with negative swaps.

IBFX announces new swap rates today, Wednesday January 28, 2009. For more information please go to our web page at http://www.ibfx.com/tools/SwapRates.aspx

STANDARDS's ........................ ................................MINI's
Pair................ buy ................Sell ........................ Pair................ buy ..................Sell
AUD/CAD ........-0.45...............-12.14 .....................AUD/CAD........ -0.04................ -1.21
AUD/CHF ........1.83................-14.68.......................AUD/CHF........ 0.18 ................. -1.47
AUD/JPY ........1.75................ -14.91...................... AUD/JPY........ 0.18.................. -1.49
AUD/NZD........-9.98................-5.95........................ AUD/NZD........ -1.00................ -0.60
AUD/USD........ 4.50.................-11.70...................... AUD/USD........ 0.45................. -1.17
CHF/JPY ........-6.24................ -7.24........................ CHF/JPY........ -0.62................ -0.72
EUR/AUD ........-19.92 ..............-2.96........................ EUR/AUD........ -1.99............... -0.30
EUR/CAD........ -5.84 ................-11.59 ...................... EUR/CAD........ -0.58.............. -1.16
EUR/CHF........ -0.91 ................ -16.01...................... EUR/CHF........ -0.09............... -1.60
EUR/DKK ........-16.48................ -5.67 ........................EUR/DKK........ -1.65 ............... -0.57
EUR/GBP ........-5.66 ................ -9.48 ........................ EUR/GBP........ -0.57 ............... -0.95
EUR/HKD ........-2.38 ................-18.61 ....................... EUR/HKD........ -0.24 ................-1.86
EUR/JPY ........-1.07 ................-16.47 ........................ EUR/JPY ........-0.11 ................-1.65
EUR/NZD ......-24.92 .................-0.15......................... EUR/NZD .......-2.49 ................. -0.01
EUR/USD ........3.30 ..................-11.20........................ EUR/USD........ 0.33 ..................-1.12
GBP/CHF ........-2.75 ................ -15.21........................ GBP/CHF........ -0.27..................-1.52
GBP/JPY........ -2.92 .................-15.72........................ GBP/JPY........ -0.29................ -1.57
GBP/NZD ........-29.22................ 2.36 ........................ GBP/NZD........ -2.92................ 0.24
GBP/USD ........1.90 ................-9.90 ........................... GBP/USD........ 0.19.................. -0.99
NZD/CHF ........2.68 ................-14.58........................ NZD/CHF........ 0.27................ -1.46
NZD/JPY ........2.61................ -14.78........................ NZD/JPY........ 0.26................ -1.48
NZD/USD........ 5.00................ -12.00........................ NZD/USD.......... 0.50 ................-1.20
USD/CAD........ -6.45................ 0.08 ........................ USD/CAD......... -0.64................ 0.01
USD/CHF........ -3.14................ -3.59........................ USD/CHF ........-0.31................ -0.36
USD/CZK........ -12.02 .............. 0.50 ........................ USD/CZK ........-1.20 ................0.05
USD/DKK........ -14.59 ................4.30 ........................USD/DKK........ -1.46 ................0.43
USD/HKD........ -4.37 ................-5.66 ........................USD/HKD........ -0.44 ................-0.57
USD/JPY ........-3.26 ................-3.93 ........................USD/JPY.......... -0.33................ -0.39
USD/MXN........-38.74 .............. 19.35 ........................USD/MXN........ -3.87 ................1.94
USD/PLN ........-20.56 ................9.21........................ USD/PLN.......... -2.06 ................0.92
USD/SGD ........-7.88................ -3.18......................... USD/SGD........ -0.79................ -0.32
USD/ZAR ........-41.55................ 25.22........................ USD/ZAR........ -4.15 ................2.52

you probably have your leverage set very high. Typically this is an excuse that brokers use to reduce the swap to "compensate" for the high leverage. If I remember correctly IBFX can go as high as 400:1 which is crazy. I bet if you reduced your leverage the swaps would come down to closer to normal.

Believe it or not, that is IBFX's normal swap rate for all standard and mini accounts.

I'm sure traders with large volume can negotiate a different swap.

Oanda has a negative interest on both sides as well for GBP/JPY, lately.

Correct me if I'm wrong.

It seems very strange considering swaps most straight forward interpretation is that it is payment of interest for the currency being bought and charge of interest for the currency being sold, times by the volume being traded at the price that it is presently at.

Therefore a BUY on the GBPJPY is buying pound (0.5%) and selling JPY (0.1%). I believe only fees / commissions could cause the result of negative swap values on both SELL and BUY.

I find it as well even this previous days. This is bad for carry trading strategies.