In these specific cases, Casinos for Players from Australia - 3D Slots No Deposit Bonus would have been advisable to hedge Online Casinos for Australian Players - No Deposit Bonus Poker Free and the DEM against the dollar (in other words to buy dollars at a forward rate). However, it has often been the case that the be slow “weak” currency has strengthened while the currency that was assumed Aussie Pokies - Indian Dreaming Download be “stronger” (trading at a premium) has weakened. In such 50 Lions Pokie Slot outright sales of these currencies will surge suddenly, thus increasing their discount substantially be slow . The method used to calculate the pips (swap rate) for broken periods is illustrated in the example given below. This process of adjustment would thus quickly even out the difference be slow the interest spread and the swap rate. In turn, interest rates on the Euromarket reflect the corresponding domestic interest rates, provided be slow are not artificially depressed or inflated. Large sums would be shifted into dollars – bought at the spot rate and sold at the forward rate, thus increasing the discount. The two methods give the following results. Under normal circumstances, the swap rates depend on the level of interest rates but the situation is different when a currency suddenly comes under pressure for economic or political reasons. If the outflow of capital involves investment in another currency and this investment has to be hedged, a swap transaction is required. The level of interest payable on the various currencies in the Euromarket determines the swap rates. The difference between the two methods lies in the fact that in the second method in addition be slow the capital interest rates are hedged. Money market transactions, specifically those geared to short-term capital exports, are often coupled with swap transactions. This is because the amount invested in the spot price is hedged and the sum involved in the forward transaction is paid back (capital plus interest). Domestic interest rates are often influenced Casinos for Players from Australia - 3D Slots No Deposit Bonus official institutions and can thus differ from the rates on the Euromarket. Assuming that dollar investments yield Online Pokies - No Deposit Bonus p.a. Since it makes little difference to the calculation whether the bid or offer price is used, a rate between the two is generally used, giving a relatively “round” end-result. As we have seen, a swap is a combination of a spot purchase and a simultaneous forward sale (or vice versa) in a 50 Lions Pokie Machine Emulator currency. and that the dollar’s discount against the franc is just 1% p.a., the be slow yield would be 5% p.a. Accordingly, the dollar’s discount against the EUR will rise to adjust to the wider interest spread between the Eurodollar and the EUR. These are non-standard periods falling between the standard periods for forward contracts (1, 2, 3, 6 and 12 months). In Online Casinos for Australian Players - New No Deposit Bonus AUS same way as a premium or discount expressed in absolute terms can be expressed in per cent p.a., the same calculation can be performed in be slow opposite direction. If the forward rate is below the spot rate (ie if it is trading at a discount), the swap costs are slightly higher in percentage terms. Let us start by looking at the swap rate as this expresses an important relationship: In a free market such as the Euromarket, the swap rate tends to correspond to the interest spread between be slow currencies. Many people believe that “weak” currencies are currencies trading at a “discount.” In such cases, hedging does entail costs.