Welcome, Guest

Login Register
Forex question What is bullion swap?
avatar Catkathy
Question by: Joseph - 29 Sep 2016, 08:46:44
What is bullion swap?
<a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK">InstaForex</a>
<a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK">InstaForex</a>
<a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK">InstaForex</a>
Answers (1)
avatar user 10944
Answer by: Samanthar - 29 Sep 2016, 08:50:03

In Spot Bullion (Gold/Silver) trading, there is an element known as swap, or commonly known as rollover charge. Bullion swaps are debited/credited when a bullion position is held to the next day. Spot Bullion trade involves borrowing a funding currency (e.g. USD) to pay for Gold/Silver, or borrowing Gold/Silver to pay for the funding currency. The differential between the Bullion lease rate and the funding currency interest rate that you trade in would therefore determine the bullion swap.

&lt;a href="https://www.instaforex.com/?x=YOUR_PARTNER_LINK"&gt;InstaForex&lt;/a&gt;
Answer the question
Submit Cancel