financing expense

Discussion in 'Forex' started by Chood, Dec 19, 2017.

  1. Chood


    How much more expensive is it to hold a long euro v usd position on OANDA than in CME futures? I refer to the financing OANDA charges to hold a lower interest currency over a higher interest currency. That difference, as I understand it, is priced into the future, only more fairly (or so I assume). An answer per 100k euro would be useful.
  2. Overnight


    Well, the 6E contract size is for 125K Euros. Not sure where there's any finance charges in there, never heard of that.
  3. srinir


    jys78 likes this.
  4. mmt


    According to the Oanda website, with a 100K position you should earn USD2.43 or pay USD6.97 at the current exchange rate.
    If the Oanda and CME futures are priced efficiently, based on the above info, with CME futures should be pricing in about USD2.27 (2.43-6.97)/2
    This means with Oanda you will be losing about USD4.7 daily compared to the CME.
  5. Chood


    Helpful, thanks.