- Capital Management
- Market Info
- Education Center
- Phillip Apps
- Customer Service
- About Us
Surplus Cash Facility
Buying and selling on the Foreign Exchange (Forex) market, takes place in currencies pairs. Two currencies will be traded for each transaction.
E.g. By trading a euro/dollar (EUR/USD) currency pair, an investor short sells US dollars to buy Euro; similarly by trading a dollar/yen (USD/JPY) currency pair, an investor short sells Japanese yen to purchase US dollars.
Multi Currency Options
If an investor holds a position overnight ,they may pay/receive related currency interest. Besides, investors should always consider the currency volatility prior before considering the expected receivable interest. Phillip uses “swap point” calculation as a means to record a client's payable/receivable interest.
While buying high yielding currencies in order to earn the interest is a viable investment strategy. Investors should note that investing in the wrong direction could cause substantial losses and the interest received is often insufficient to compensate the loss; so investor should first consider the movements of the currency and then the interest earned/paid.