HiWhat is the impact of the interest rate on the Forex market.If i sell short us/can $ will i get paid interest or will i pay interest ? I read that there is some timing limit to respect like 05 pm and wenesday.Have a nice dayM. Theriault

u have to pay

if you sell usd to someone, you need to borrow them back from someone (or go in debit on your usd bank account) so you will pay USD interest rate on this amount. At the same time, you now have bought some CAD, which you can put in a savings account that will pay you the CAD interest rate. At the moment, the CAD interest rate that you receive is a little lower than the USD interest rate that you pay, so each day you lose a little on that trade.

Shorting the USD/CAD will result in you paying a daily interest. Today's rate at my broker shows that you would pay $2.50 for each standard lot.The only two common currency pairs that I see paying an interest rate when shorting are the EUR/USD paying $2.80 and the EUR/GBP paying $4.02. Most brokers debit and credit the swap rates at around 5pm EST. Wednesday investors receive (or pay) triple interest to account for the weekend when the market was closed.Paul