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Computation Currency Contract’s Interest
If not today lever contract, our company will lengthen the transaction processing to complete the business transaction to next 2 transaction day, to start calculation of various currencies pay/receive rate of the computation should have the interest.
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Computation of Interest of Currency Contract
If not today level contract, our company will lengthen the transaction processing to complete the business transaction to next 2 transaction day, to start calculation of various currencies pay/receive rate of the computation should have the interest.
Product |
Buys
(Deals with/Receivable) |
Sells
(Deals with/Receivable) |
EUR/USD |
-1.00 |
-2.00 |
USD/JPY |
-1.75 |
-1.25 |
GBP/USD |
-1.50 |
-1.50 |
USD/CHF |
-1.50 |
-1.50 |
AUD/USD |
2.00 |
-5.00
|
USD/CAD |
-2.00 |
-1.00 |
NZD/USD |
0.75 |
-3.75 |
EUR/JPY |
-1.00 |
-2.00 |
EUR/GBP |
-1.50 |
-1.50 |
EUR/CHF |
-1.25 |
-1.75 |
GBP/JPY |
-1.00 |
-2.00 |
AUD/JPY |
2.00 |
-5.00 |
LLG |
-2.00 |
-1.00 |
SIL |
-2.00 |
-1.00 |
Remarks:
The above currency interest rates are for reference only. The real interest rates change subject to the market’s interest rate change.
Interest Rate Calculation of Currency Contract
1: (INCLUDING EUR/GBP, NZD/USD, AUD/USD, GBP/USD, EUR/USD)
Total Contract Size x Position held for number of days x Related Currency Interest Rate x Rate of Squared Position = Computation Accumulated Interest (US$)
Example : Customer buys 5 contracts of GBP/USD x holding the position for 10 days at 1.5% Annual Interest Rate x Today’s level price of 1.7800 for computation accumulation interest.
(5 x 100,000.00) x (1.5% / 360) x 10 x 1.7800=US$370.80
- The customer can obtain US$370.80 for 10 days interest.
Interest Rate Calculation of Currency Contract
2: (INCLUDING USD/CAD, USD/CHF, USD/JPY)
Total Contract Size x Position held for number of days x Related Currency Interest Rate x Rate of Squared Position = Computation Accumulated Interest (US$)
Example : Customer buys 5 contracts of USD/JPY x holding the position for 10 days at 1.5% Annual Interest Rate x Today ‘s Level price of 119.00 for computation accumulation interest.
(5 X 100,000.00) X (1.5% / 360) X 10= US$208.30
The customer can obtain US$208.30 for 10 days interest.
3. LLGUSD
On day 1, customer buys 1 contract (100oz) of LLG at 540.50
On day 2, customer sells 1 contract (100oz) of LLG at 542.50
The profit gained is:
(542.50 - 540.50) x 100 x 1 =USD 200
Suppose the interest rate of holding London Gold (LLG) and borrowing USD is 5.25 %. As the client close the position 1 day after the opening, the interest to be paid can be calculated as following:
1 x 100 x 540.50 x 5.25% / 360 (days) x 1 (day) =USD 7.88
The total profit from the transaction is: USD 200 - USD 7.88 = USD 192.12.
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