Discussion of Forex Trading and Currency Trading

When determining rollover rates in forex, does lot size matter?

From page 55 in Currency Trading for Dummies, I broke down the huge formula to:

for long postion:

((x - y)bD)/365

where x = long side interest rate in decimal
y = short side interst rate in decimal
D = days
b = exchange rate in decimal
a would equal lot size.

I dont think it does really. but this again is only for rollover rates..

just wondering

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This entry was posted on Thursday, July 30th, 2009 at 6:06 am and is filed under forex trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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3 Responses to “When determining rollover rates in forex, does lot size matter?”

  1. gatzap Says:
    July 30th, 2009 at 6:06 am

    The rate is the same regardless of size. Double your position and you double the gain/loss from the rollover.

  2. Elliott Says:
    July 30th, 2009 at 6:06 am

    The size of your lot does not change the rate but will change the overall amount. i.e. 10% of 100k is half of 10% of 200k. The interest rate that you are using may not be accurate as many brokers will not offer exactly the same rate eg. they may payout less a 0.25% or charge more 0.5%. Just be careful when doing your calculations which figures you use.

  3. Marc Says:
    July 30th, 2009 at 6:06 am

    It depends on the size of your lot…

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