Am I being a noob or is something amiss here?
Example:
Swap rates for AUD/USD are 0.63/-0.47
Their terms say
Financing charges on rolling spot FX are also referred to as swap charges and are quoted in swap points.
A negative swap point if you are net long the FX pair will result in your Account being credited, and you will
receive funding. A positive swap point charge when long will result in your Account being debited and you
will pay funding.
Meaning that longs get charged 0.63, and shorts get charged 0.47.
Have I just been retail too long?? As this seems nonsensical to me given the actual interest rate differentials
Example:
Swap rates for AUD/USD are 0.63/-0.47
Their terms say
Financing charges on rolling spot FX are also referred to as swap charges and are quoted in swap points.
A negative swap point if you are net long the FX pair will result in your Account being credited, and you will
receive funding. A positive swap point charge when long will result in your Account being debited and you
will pay funding.
Meaning that longs get charged 0.63, and shorts get charged 0.47.
Have I just been retail too long?? As this seems nonsensical to me given the actual interest rate differentials