Interpreting Swap Rate Quotations

Discussion in 'Forex' started by comintel, Jul 3, 2011.

  1. I am having trouble interpreting quoted rollover rates.
    Is there a convention that a plus sign means a debit?

    For example, from

    Forex Cross Long Positions Short Positions
    AUDCAD -0.000427 -0.000611

    Do these mean that I pay a charge whether long or short AUDCAD? Or does it mean that I earn a credit in either case? Or what does it mean?

    For another example.

    Forex Cross Long Positions Short Positions
    USDSGD 0.000026 -0.000028

    Does this mean that I pay to be long USDSGD but I get a credit if I am short USDSGD?

    There are pairs for which both quotes are positive, and others where both are negative, which does not seem to make any sense to me.

    Thanks for any help.
  2. When both are negative it is because they pay/charge the rollover rate + a spread. So of the rollover is 0.25% and that use a 0.5% spread over the rollover then they pay -0.25% and charge -0.75%. Making it both negative.
    As far as sign convention I believe a negative is a charge and positive a credit. To make sure of the convention your broker use you can look at the high interest rate differential pairs like AUDJPY.