How to calculate overnight interest payment?

Trading Discussion
1

Hi All,

Just wondering how to calculate the interest payment if hold the position overnight? Which interest rate benchmark they use? LIBOR?

Thanks

2

Yes, Libor is common. An premium is added as a income for the broker. But just look at the roll-over cost at your broker, as this is the interest that you pay or receive.

4

Doing Math can be very frustrating to other people. Several of us were vexed by the difficulty of those crucial abstractions since school days. Yet adults we have to develop certain math skills if we want to make balanced financial choices. We need to know throw to calculate simple interest, also as compound interest. Those looking to invest likewise need to know how to calculate dividends.

5

If you’re using MT4, right-click on the Market Watch window -> Symbols -> Properties for the pair you want to look at. It’ll give you the overnight swap for longs or shorts per lot, denominated in the second currency of the pair (so if you’re looking at the USDCAD and ‘swap long’ is -5, you’d lose C$5 per lot you went long).