888 markets offer a premium Forex trading platform. As an investor with 888 markets you can trade with confidence and assurance from a regulated firm.
Storage is a mechanism used for Sharia Compliant accounts where interest cannot be received nor paid out by our clients.
Storage fees are applied to any contract or product which is not a future (and therefore does not have a set expiry date). Storage will be paid after 14 days of holding open a position, and is a charge reflecting the counterparty costs to 888 markets.
If you buy a currency or go Long the formula is:
Long currency rate – Short currency rate – 1% adjustment (Contract Value * Rate) / 365days = Swap charge per day
If you buy 1 Lot of EURUSD, you are long EUR and short USD:
0.75% – 0.25% – 1% adjustment = 0.5% – 1% = -0.5%
(128000 * -0.5%) / 365 = -$1.75 per day.
Therefore you would pay a $1.75 charge per day.
If you sell a currency or go Short the calculation is the same however the formula is slightly different:
Short currency rate – Long currency rate – 1% adjustment (Contract Value * Rate) / 365days = Swap charge per day
If you sell 1 Lot of GBPAUD, you are short GBP and Long AUD:
3% – 0.5% -1% adjustment =2.5% – 1% = 1.5%
(144000*1.5%) / 365 = AUD 5.91 per day
Then multiple by the AUDUSD rate to get a USD value
You would earn 5.91*1.0420 = $6.16 per day.