scorpioncapital Posted May 22, 2018 Share Posted May 22, 2018 I find it strange that at IB some currencies are being charged 4% to borrow and 0% to hold. Example: Polish Zloty. Is this something to do with domestic central banks because it just seems weird to have a differential from 0 to 4%. Even USD is paying something now. Link to comment Share on other sites More sharing options...
writser Posted May 22, 2018 Share Posted May 22, 2018 IB just has different markups for different currencies. PLN is probably perceived as riskier / more difficult to handle so the spread on top of the benchmark is ~6% as opposed to ~1.5% for USD (exact numbers depend on size of position). Link to comment Share on other sites More sharing options...
watsa_is_a_randian_hero Posted May 22, 2018 Share Posted May 22, 2018 https://en.wikipedia.org/wiki/Interest_rate_parity Link to comment Share on other sites More sharing options...
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