
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
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.
7-18-08 S&P Futures, Daytrading For Dummies Trading System..
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