Paying on the roll even when you're entitled to earn

T

trgovec

Hey guys,

Anybody ever experiencing paying interest on rollover, despite being long the higher yeilding currency?

I'm trading with GAIN Capital, and this has happened to me twice within the last month. GAIN says that everyone, regardless of account size, has the opportunity to earn interest. However, I was long NZD/JPY and USD/CAD for a few days (both positive carry trades), and yet I still paid interest.

Am I missing something with respect to rollover? Is there more to it than just interest-rate differentials?

Any insight is much appreciated! Thanks ;)
 
Don't know about Gain or your particular case, but some forex market-makers set a maximum leverage such as 50:1, for the trader to be eligible to receive interest credits as well as pay debits (which everyone does). Just a thought.

Have you posed this question to their customer service yet? Seems like it would lend itself to a simple answer.
 
I have asked GAIN client service, lol. They keep beating around the bush...won't answer my question straight up. I don't think anybody there knows a thing about rolls.

Either there is some other charge that nobody understands, or they're pocketing what I should be earning.

I don't know.
 
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