Profiting By Swap
Forex Swaps are a regular tool used by banks and financial institutions in
the course of business. Such transactions however could also be used to
maximize the utility of money capitalizing on the interest rate differentials affecting the different currencies.
A typical Swap involves two parts, a spot transaction to acquire the
currency desired and a reversed forward transaction to revert back to the
original currency. The complexity as such mainly limits the use of swaps to banks and other financial institutions that regularly take
advantage of the differences in interest rate differentials.
Forex Swap
Update: July 26, 2010
Please be informed that effective DAY, MONTH DAY, YEAR the Interest Rates for currencies and Loco will change/remain as follow:
| Product | Description | Buy (Long) | Sell (Short) |
| EURUSD* | Euro Vs US Dollar | -1.50% | -1.50% |
| USDJPY* | US Dollar VS Japanese Yen | -2.00% | -1.00% |
| GBPUSD | Great Britain Pound sterling VS US Dollar | -1.25% | -1.75% |
| USDCHF* | US Dollar VS Switzerland Franc | +2.75% | -5.75% |
| AUDUSD | Australian Dollar VS US Dollar | +2.50% | -5.50% |
| USDCAD | US Dollar VS Canadian Dollar | -1.50% | -1.50% |
| NZDUSD | New Zealand Dollar VS US Dollar | +0.50% | -3.50% |
| EURCHF | Euro VS Switzerland Franc | -1.00% | -2.00% |
| EURGBP |
Euro VS Great Britain Pound sterling | -2.00% | -1.00% |
| EURJPY | Euro VS Japanese Yen | -1.25% | -1.75% |
| GBPJPY | Great Britain Pound sterling VS Japanese Yen | -1.00% | -2.00% |
| GBPCHF | Great Britain Pound sterling VS Switzerland Franc | -1.50% | -1.50% |
| GBPCAD | Great Britain Pound sterling VS Canadian Dollar | -1.00% | -2.00% |
| GBPAUD | Great Britain Pound sterling VS Australian Dollar | -4.00% | +1.00% |
| AUDJPY | Australian Dollar VS Japanese Yen | +2.75% | -5.75% |
| CHFJPY | Switzerland Franc VS Japanese Yen | -1.25% | -1.75% |
| XAUUSD | Spot Gold | -4.50 USD | -4.50 USD |
| XAGUSD | Spot Silver | -3.70 USD | -3.70 USD |
Note: Be aware that on Forex there is triple storage on Wednesday for Friday to Monday rollover.
Millennium Trader SWAP
The Swap facility of Millennium Trader is a natural feature of deferred Spot FX trading, in buying one currency against another a trader either gains or is
penalized by the prevailing interest rates between the two currencies. Thus if you bought a currency with higher interest rates than that you sold the net
effect would be for you to gain on the differentials and vice versa. Given the level of leverage available a trader could also get interest gains as a multiple
of his capital.
PT. MILLENNIUM
PENATA FUTURES
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20-21th Floor Jakarta,
10340 INDONESIA
Ph: +6221 392 9929
Fax: +6221 392 1315
TOLL FREE
0-800-123-MPFX (6739)
Email: info@mpf.co.id
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