Detailed explanation of overnight interest calculation for Aofu currency pair
The overnight interest of all currency pairs in the Aofu platform is calculated according to the spread model. The specific formula is as follows:
Overnight Interest = Lots × Long or Short Overnight Interest × Last Quote Point Value × Number of Days Traded
Example of indirect pricing:
Assuming you hold 1 lot of EUR/USD and hold the position overnight for one day, the overnight interest is calculated as follows:
Lots (1) × Long Overnight Interest (-3.52) × Last Quote Point Value (1) × Trading Days (1) = -3.52
Example of direct pricing method:
Assuming you hold 1 lot of USD/CAD and hold the position overnight for one day, the overnight interest is calculated as follows:
Lot size (1) × Long overnight interest (-2.50) × Last quoted pip value (1)/USD/CAD exchange rate (1.30000) × Trading days (1) = -1.92
(Note: Overnight interest data is updated daily at 19:00 Beijing time. Due to real-time fluctuations in the exchange rate against the US dollar, the displayed results are for indication only and may differ from the actual interest rate.)
The interest periods for each currency pair are as follows:
System time (GMT + 2) 00:00
Beijing time (GMT + 8) 06:00
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.