Base / Quote currency

hello:
I would like to know when you keep a long or short position open over
night I understand that you pay interest on one currency and receive
interest on another. Question which currency do you receive interest
on the base or the quote currency?
thank in advance for any responses.

jase

Hello, Jase

It depends on whether you are [B]long[/B] or [B]short[/B] the pair.

If you are [B]long[/B] the USD/JPY, for example, you collect interest on USD, and pay interest on JPY.

If you are [B]short[/B] that pair, then you pay interest on USD, and collect interest on JPY.