Strange Pepperstone Swap Condition

Broker review
A
arkhe
26 Nov 2015, 09:17 1,553 Views
Why is the swap buy more expensive than the swap sell at pepperstone broker. Even though the transaction value is the same and the position opening time is the same... strange...
If it's the same at other brokers.....?

1 Answer

M
martin 29 Nov 2015, 13:10

@ arkhe:
The swap value for buy positions and sell positions depends on the currency pair, as interest rates vary from country to country.
The calculation method:
For currency pair A/B:
Buy position, swap = ((interest rate of country A - interest rate of country B) x lot x contract size)) / 365 days
Sell position, swap = ((interest rate of country B - interest rate of country A) x lot x contract size)) / 365 days

Here are the swaps as of November 27, 2015 from one broker:
EUR/USD : swap for buy : -USD 3.60 ; swap for sell : +USD 1.15
AUD/USD : swap for buy :  +USD 4.15 ; swap for sell : -USD 7.06
USD/CHF : swap for buy : +2.39 ; swap for sell : -USD 7.86
US interest rate : +0.25%, Eurozone interest rate : +0.05, Australian interest rate : +2.0% and Swiss interest rate : -0.75%.
For swaps, each broker is different but not significantly so.

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