The interest differential in Japan and the currency issue country is called a swap with the Forex swap in Forex (foreign exchange deposit dealings). When the foreign currency is bought when the interest rate of Japanese yen is lower than the interest rate in the currency issue country, the interest differential of the two countries is added as a swap point. It is the one to be brief like the return of interest. For instance, the interest rate of Japan enters and 4% that is the interest differential of the two countries enters as a swap point when the interest rate in the issue country of the bought foreign currency is one %5%.
The leverage effect that is the real pleasure of Forex (foreign exchange deposit dealings) influences this swap point. For instance, if the leverage is increased by a factor of ten when the interest differential of the two countries is 4% and the foreign currency is bought, the swap point becomes as much as 40% for entrusted guarantee money (deposit). However, it is time when enter the swap point sells the currency with a low interest rate, and bought the currency with a high interest rate.
When the currency with a high interest rate is sold oppositely, and the currency with a low interest rate is bought, the swap point will be paid. With the position from sales of the foreign currency, it is necessary to note it.
