Swap points have dramatically dropped!! 3000 yen every day has become 1000 yen! Clung to the company due to complaints and inquiries (-_-メ)
The Brazilian real is a high-interest currency, and after the real shock, the rate has remained firm. It was an extremely attractive currency where you could profit from swings, and simply holding a position could generate substantial profits.
IG Securities, the only broker where BRL/JPY could be traded FX-wise, became an indispensable presence for me.
For 10,000 units, the built-up premium was about 350,000 yen, and yet the daily swap points were 92 yen per day.
The interest received was 92 yen × 365 days = 33,580 yen, so the interest rate was about 9.6%.
This long-running swap of 92 yen per day suddenly plummeted.
I knew Brazil had been continually lowering its policy rate, but the decrease was beyond plausible levels even when considering that.
Daily 92 yen became 34 yen, you know?
With 320,000 units of real/yen held, the swap points of 92 yen × 32 lots = 2,944 yen
On 9/12, it was 32 yen × 32 lots = 1,024 yen
And from 9/13 onward, 34 yen × 32 lots = 1,088 yen
※ The 3x day is irregular at 36 yen; other days continue at 34 yen.
(I took profit during rate rises because the real was so strong!)
Therefore, after thorough investigation, I filed a complaint with IG Securities immediately.
Today’s assigned BRL/JPY swap points are unreasonably low, so I would like you to correct them.
Until yesterday, it was 92 yen per day for 10,000 units, but from today it is 32 yen.
I know Brazil is cutting rates, but it has only been at a pace of about 1% per month, and even after the rate cut on 9/6, I believe the policy rate is 8.25% (refer to Klug's FX foreign exchange information).
…So, with a swap of 32 yen per unit, the annual amount is 32 × 365 = 11,680 yen. With a build-up of 350,000 yen, that becomes about 3.33% interest. This is impossible, right?
IG Securities’ swap pricing is clearly stated athttps://www.ig.com/jp/swap-point#calculate.
※ For two emerging market currency pairs, since there is no TomNext trading, the rate applied is the actual interest rate difference between the two currencies in Non-Deliverable Forward (NDF) trading, plus or minus 0.3 percentage points per year. We understand that the actual interest rate in NDF trading is unstable, but the deducted yen interest is very low, and your share is also very low at 0.3%. I cannot believe this makes the 8.25% interest become 3.33%! I have recommended IG Securities to many people who can trade real; four of them have opened accounts through me and are trading. Please promptly correct today's assigned amount, and from tomorrow onward ensure this never happens again. Also, I demand a satisfactory explanation for why this happened.
So, how did IG respond to this?
To be continued in the next installment.
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