That is 'The credit of Simultaneous pressing of keys' Information:
The credit of simultaneous pressing of keys payment of percent the dealer of Forex who takes a long position on couple of currency quickly. Night situation - what isn't closed on the same day and still openly from 17:00 EST. Branches of currency happen in couples to the dealer buying one currency with another. At 17:00 the account of the dealer either pays or brings percent on each situation depending on the main interest rates of these two currencies.
2019 - Credit of simultaneous pressing of keys
Credit of simultaneous pressing of keys, Information - 2019
DESTRUCTION of 'credit of simultaneous pressing of keys' Information:
which are received by foreign currency (FX), the dealer obtains the credit of simultaneous pressing of keys when they take an open position in currency, trade because of distinction in interest rates of these two currencies. If the interest rate on couple of currency kept, the long party of trade is higher, than an interest rate on short currency of the party, the dealer will obtain the credit of simultaneous pressing of keys based on distinction in the interest rates connected with couple of currency in trade.
In Forex simultaneous pressing of keys means that situation stretches at the end of operational day without settlement. Simultaneous pressing of keys can be the credits or outputs to accounts of the dealer, depending, what side of trade they take quickly.
FX background for the credits of simultaneous pressing of keys
Forex (FX), branches include loan of currency of one country to buy currency of other country, usually on the interest rates established by the central banks which let out currency. For the branches which are carried out quickly the seller of currency will owe interest to the buyer of currency in trade settlement.
For dealers the majority of provisions is turned daily while they don't close or locate. As the FX markets exchange 24 hours a day, five days in a week, they randomly chose 17:00 EST to be end of operational day. Therefore, any trade remaining opened between 17:00 and 17:01 is exposed to the credit of simultaneous pressing of keys or the debit. The FX market handles days off, adding that the value of two additional days of simultaneous pressing of keys makes the branches which are carried out opened by 17:00 on Wednesday. Additional simultaneous pressing of keys also, as a rule, happen in two working days prior to the main holidays.
As there are credits of simultaneous pressing of keys
Branches between two currencies with various interest rates and rather stable exchange rates are known as the transport affairs made in hope for harvesting of the credits of simultaneous pressing of keys which advance any possible losses from fluctuations in exchange rates. If interest rates are the same on both currencies, the credit of simultaneous pressing of keys from both parties of trade will be counterbalanced. However, where rates differ, the dealer will earn either the credit or the debit on simultaneous pressing of keys of trade in couple of currency.
The dealers who are selling or having a short position in currency of lower interest rate would pay the holder of long currency of situation if her level was higher.
- If the interest rate of long currency goes down and becomes less, than short currency, the dealer would owe distinction in rates to the holder of a short position.
Brokers automatically apply the credits of simultaneous pressing of keys or outputs to accounts of dealers. Some investors exploit this aspect of trade of FX and attempt to increase their profit, bringing percent with the credits of simultaneous pressing of keys.
Example of the credit of simultaneous pressing of keys
The investor hoping to make money through the credit of simultaneous pressing of keys, would look for couple of currency where an interest rate on currency that takings of the dealer are higher, than level on currency on other end of trade. For example, the dealer buying trade in SShA/JPY DOLLAR would buy US dollars (US dollars) and would sell Japanese yen (JPY). If the interest rate of US dollar made 2 percent, and an interest rate of yen there were 0.5 percent, the dealer would receive interest, every day equal to an annual interest rate for 1.5 percent.
Warning About Refusal! The information on our website may be out-of-date and not official. For more information, please visit the Bank's official website.
For credit, insurance and account opening issues, please contact the Bank's consultant by phone. Thank you for using our site.
If we don 't have accurate information or it is out-of-date, please notify us by E-mail.