Whoa ! Now they charged me six times more ! What is going on ! They going way over board , i am closing account.
Well, Jerry11901, there are dealers out there allowing you to earn and pay differential interest on 400:1. But how anybody could carry a position for a very long time maxed up to 400:1, without soon getting a margin call, would be amazing. Getting and paying interest on leverage based on the position without regard to the base currency is amazing to me in the cash Forex business. But it is probably amazing to me, because of my lack of understanding. The fact is that I can get paid or pay interest on paper holdings, not real cash holdings, thus the triple digit yields. In one religion, the calculation of interest is considered usury at any rate or scheme. When there is leverage...there is risk especially if you could end up owing your broker money in the event of what appears to be a gap at news time. There are some brokers that guarantee in writing that you never would owe money to them....there are also some that pay and charge interest second-by-second. Then there are some marketmakers that can pay interest on your cash balance which never is touched when you have open positions, until you close them. So that means that you can make differential interest (in the triple digits on some of the pairs) on your open positions PLUS interest on your FULL cash balance (as high as 4.75%). This is the Wild West of Forex... Jerry11901, Excuse this long post, which really is not telling you anything that you do not already know. I wanted to agree on some of your points without singling out the particular dealer in the subject of your thread, which does. Michael B.