This is an update to my previous thread. I hope this is useful to all who’s reading.
I had to reach the “The Architect” (from the Matrix) to make the formula clear! To calculate carryover interest simply:
IRD (interest rate differential) * # of units/365 Days = “Interest” * # of days to settle + Bank Premium (which is a fee charged by the Bank to your Broker that fluctuates and is usually not disclosed)
My example: AUDUSD short 1 LOT held over Wednesday plus a Holiday (i.e., 4 days of interest)
(2.50% - 0 .25%) * 100,000units /365 Days= <$6.16> times # of days to settle or 4 plus bank fee = -$28.10
Good luck and Good trading!