Normally when I buy the NZD I get a positive swap rate, obviously due to the interest rate differential. But when I buy the NZD against the AUD (selling AUDNZD) I get a negative swap rate. Why is this?
Normally when I buy the NZD I get a positive swap rate, obviously due to the interest rate differential. But when I buy the NZD against the AUD (selling AUDNZD) I get a negative swap rate. Why is this?
Ignored
Anyone know any Brokers where Selling the AUDNZD gives positive swap?
Normally when I buy the NZD I get a positive swap rate, obviously due to the interest rate differential. But when I buy the NZD against the AUD (selling AUDNZD) I get a negative swap rate. Why is this?
Ignored
It might depend on your base currency? See this article. http://www.thinkforex.com/markets/fo...p-calculations
How do you calculate a swap rate?
Swap debits/credits are calculated as follows:
Current long/short rate * number of lots = swap debit/credit in second currency Example one
Your account currency is AUD and you hold one lot long on AUD/USD on 5 February 2015:
+4.96 * 1 = $.4.96, converted to your account currency = A$6.35 Example two
Account currency is USD, you hold 2.5 lots short of EUR/GBP on 5 February 2015:
-1.08 * 2.5 = -£2.70, converted to USD = -$4.13
