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Yes, there are daily financing cost (Swaps) that are applied onto LFX positions held overnight.
This is because, all LFX prices quoted by UOBKH is based on Spot Market which has a settlement on T+2. At the end of the trading day (17:00 EST), all open positions needs to be automatically rolled forward to the next available settlement date, as such swap will be debit/credited to the account. The swap amount is based on the market swap price from our liquidity partners whom are Tier 1 banks with a mark up.
Please note that for trades that are less than USD $10,000 in value, there will be additional mark ups.
Examples:
Trade (value less than or equals to US$10,000)
A Buy trade of 10,000 AUDUSD done @ 0.69 is valued USD $6900
As trade value is less than USD$10,000, this position will have a swaps mark up of 0.4pips.
Trade (value greater than US$10,000)
A Buy Trade of 30,000 AUDUSD done @ 0.69 is valued US$20,700.
As trade value is greater than USD$10,000, this position will have a standard swaps mark up of 0.2 pips.
