How to calculate overnight swap using MT4?

[Kevin_LaCoste]

This is a little maths heavy so bear with me.

Under MT4, we can see the swap rate offered by our broker by looking at Symbols and clicking on “Properties” for the currency pair that we want to look at. Here’s an example for the EUR/ZAR:

We can see that my broker is offering 141.3 POINTS if I short the EUR/ZAR overnight.

If my account is in AUD and I short 1 lot, how would I calculate my overnight swap? I assume that since 1 lot is 100,000 units, shorting 1 lot would earn me 141.3 units in swap. Since this is the EUR/ZAR, I would be earning 141.3 ZAR. Since the AUD/ZAR is approximately 9.2 (AUDZAR=X: Summary for AUD/ZAR- Yahoo! Finance), I would earn 141.3 / 9.2 = AUD$15.30.

Is my understanding correct or incorrect?

[perryfx]

@Kevin_LaCoste

This is a little maths heavy so bear with me.

Under MT4, we can see the swap rate offered by our broker by looking at Symbols and clicking on “Properties” for the currency pair that we want to look at. Here’s an example for the EUR/ZAR:

We can see that my broker is offering 141.3 POINTS if I short the EUR/ZAR overnight.

If my account is in AUD and I short 1 lot, how would I calculate my overnight swap? I assume that since 1 lot is 100,000 units, shorting 1 lot would earn me 141.3 units in swap. Since this is the EUR/ZAR, I would be earning 141.3 ZAR. Since the AUD/ZAR is approximately 9.2 (AUDZAR=X: Summary for AUD/ZAR- Yahoo! Finance), I would earn 141.3 / 9.2 = AUD$15.30.

Is my understanding correct or incorrect?

I think you are correct on this.

[Kevin_LaCoste]

^ Yep, I held a position overnight, my swap was exactly as I calculated.