Forex trading involves risk. Losses can exceed deposits

How is funding on forex positions calculated?

FX funding

A tom-next rather than an interbank rate is used in the calculation of funding costs for forex.

Tom-next is the day’s market swap rate for that pair.

Example tom-next rate: -1.39/-0.39.

-0.39 would be used to calculate the funding cost on a long position.

-1.39 would be used to calculate the funding cost on a short position.

Size x (tom-next rate + admin fee)

Size means total value of lots (number of lots x value per lot)

Tom-next is the day’s market swap rate for that pair

Admin fee is no more than 0.5% per annum

Three-day funding is charged on a Wednesday.

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