I'm a newb..interst parity for real??

[Ticker_shuffle]

I noticed my average rate dropped 5.5 points and called my rep irate thinking I was being scammed, and I guess when he said the only money they make was on the spread it included the interest on the loans for the currency. Is this legit?

anyway, he said he was going to put me on a high rate parity or something which would make that difference less an issue. Damn, now I am that much further away from being in teh money on this trade.

 

[gc1]

Spot positions held past a set time at the end of the day (usually 5pm EST) are rolled to the next day and adjusted according to the difference between the currency interest rates. Most "market makers" add a mark-up to this figure to give themselves extra profit. Many roll 3 days on Wednesdays because of the (antiquated) 2 day settlement (which becomes Monday instead of Friday).

Your "market maker's" order entry system should give "buy premium" and "sell premium" or similarly named figures so you'll know how much to expect to be charged (or to receive).

 

[Ticker_shuffle]

Okay, seems legit. My rep at Forex.com changed the ratio for me so they don't shave another point off me. If I had know that, you can play it to your advantage, where you position to get the free points - so he says.

Thanks for the reply. I just shorted more USD/JPY...I am trading to win