Swap point is neutral

Many investors seem to focus on the higher yield foreign currencies to get some swap points. Turn your eyes to the essence what the interest rate exists for. In general, the bluechip companies can borrow money from the bank in lower interest rate, while the others are required higher interest rate to raise fund. Forex market is the same here. The value of lower yield foreign currencies should be going up in natural under the circumstance that any other conditions remain the same. As long as the power is carrying on, someone can swim up against the stream, but will be flashed away when they are exhausted. The gap of interest rates between foreign currencies is correspondent to the speed of the stream. It is often heard that many individual investors could lose much money in the higher yield foreign currency deposit, but please make sure of this fact trying the forex margin trading. On the contrary, the purchasing position of lower yield foreign currency devalues the carrying cost due to rolling over and it feels that some losses would arise. It is only adjusted in advance by the disadvantageous interest rate earning. There is no juicy story on the earth. In the forex margin trading it should make both sides of position equal. Take it into your consideration that you should aim the capital gain by price movement instead of the income gain like the higher yield foreign currencies.