Interest Calculation


 

Interest (premium) is applied per ‘lot’, for every open position, which is rolled over the end of every trading day. 
Interest can be applied in form of fixed dollar amount, or in form of an annual percentage rate. This setting can be done by ActForex according to System Administrator’s request.
System Administrator can decide to apply the same, ‘standard’ type of interest to all accounts in the system. In that case the ‘Interest Choices’ will be hidden from Administrative applet.

However, Administrator may decide to apply the following different ‘Interest Choices’ for individual accounts:   

  • Standard. Interest shown as is: positive interest shown as positive, negative as negative.
        Example : Interest +$2.50; -$3.50 Shown as +$2.50; -$3.50
  • Negative. Negative interest shown as negative, positive - shows negative absolute value.
        Example : Interest +$2.50; -$3.50 Shown as -$2.50; -$3.50
  • Zero/Negative. Negative interest shown as negative, positive – shown as zero
        Example : Interest +$2.50; -$3.50 Shown as 0; -$3.50
  • Zero. Both interests shown as zero. No interest applies to account.
        Example : Interest +$2.50; -$3.50 Shown as 0; 0

 


Formula Calculation for GBP/USD, EUR/USD, AUD/USD, NZD/USD

Contract size (100,000) x open buy or sell interest rate x no. of  lots
x 1 day (Friday 3 days) x open price
------------------------------------------------------------------------------------------------------------

                                                        360 days

Example calculation of premium buy at 2.5% for GBP open 1 lot buy at
open price 1.4040:

100,000 x 2.5% x 1 x 1 x 1.4040
---------------------------------     =   US$9.75 (Premium added)
            360

Example calculation of premium sell at -3.5% for EUR open 1 lot sell at
open price .8500:

100,000 x -3.5% x 1 x 1 x .8500
----------------------------------   =  -US$8.26
            360


Formula Calculation for USD/JPY, USD/CHF, USD/CAD

Contract size (100,000) x open buy or sell interest rate x no. of  lots
x 1 day (Friday 3 days)
-----------------------------------------------------------------------------------------------

                                    360 days

Example calculation of premium buy at 0.5% for USD/JPY for open 1 lot
buy at open price 106.00

100,000 x 0.5% x 1 x 1
-------------------------        =    US$1.39
            360

Example calculation for premium sell at -9.5% for USD/JPY for open sell
at 106.50

100,000 x -9.5% x 1 x 1
--------------------------       =   -US$26.39
            360