Andrew Jones
Recruit
- Messages
- 8
Can someone please explain how these work. My understanding is this: I go short AUD/USD pair. I sell $100,000 AUD and use it to buy USD. I have taken out a loan and must pay interest on my debt. I could not sell the AUD unless I had some to sell So I had to borrow it first. If I hold the position of overnight-which I normally do I pay the interest On the borrowed money. But today I was talking to one of the salespeople at one of the major brokerages and discussing their "roll rates"and what he seemed to be telling me was incredibly expensive. on a $100,000 standard lot loan amounts to $16.40 daily. That's what I got from their webpage which one of the staff gave me. 1.6 pips per day! So if I were to hold that position for one week-which I often do-it's 8 pips. plus the spread say 2 pips. I must be getting it wrong. That would amount to 10 pips per week. Mine never seem to have paid that much when trading with IB. Can someone please straighten me out? Where am I getting it wrong?