FOREX: Who can tell me when to use LIBOR versus LIBID?

Say I'm long on EURUSD and I take the position overnight. Do I receive LIBID rates on EUR and pay LIBOR rates on USD?

So I'm assuming that you're saying that the broker doesn't actually pay the interest rates to the customer? They seem to charge rates at 5pm everyday in the form of buys and sells one minute later... looks like I didn't hold a position where I bought pair that allowed for me to get paid there...

You may not automatically receive it by virtue of your forex position.
You will have to take care of the investment part of the Euro separately. But, in principle, you may be able to receive LIBID and pay LIBOR. You described the arbitrage process that achieves the parity of rates.

Let me explain - you borrow and convert a million dollars to equivalent euros to invest in LIBID based rates. You will pay LIBOR based rates as well, if you borrow outside US (which is lower than US rates).

Even if this process doesn't happen from your side, the other market participants may do this to bring the exchange rates to this parity. Hence, you may be able to achieve this by just holding the currency. However, I don't know whether you may be able to do this overnight.

Tags

　　Fund Portfolio 　　Fund Performance 　　Fund Manager 　　Fund Management 　　Forex 　　Foreign Investment 　　Financial Investment 　　Fidelity Investment 　　Fidelity Fund

Related information

FOREX best free chart Web site and what mean pipes spread ?

Pip spread is the difference in the ask and bid prices of a particular pair of currency. Usually 3 to 5 for major common currency. Up to maybe 15 or even 20 pips difference for less coimmon pairs, ...

Forex---Top 5 currency pair ?????

GBP - Pound Sterling EUR - Eurodollar JPY - Japanese Yen CAD - Canadian Dollar CHY - Swiss Franc AUD - Australian Dollar

...

Forex trading how to use of indicators?

For Forex i wouldn't be too concerned with fundamentals since they're too volatile to be reliable. Factors influencing the exchange rate and how they inter react are too complex even for ...

Forex charts?

one little piece of the puzzle does not a Plan make. You've left out so much, there's nowhere to begin. We could guess forever. What are you using to generate signals? Which soft...

Forex Trading Software?

There's some good ones on this site - ...

(Forex) MULTI- CURRENCY ACCOUNT?

I've been doing online investing in Forex for 2 years and never heard of that, that's not saying it's not true. I have a e-gold e-currency account that's backed by gold spot pr...

FOREX, which is the best zigzag currency pair?

What is "zigzag currency pair"? If you are talking about the pair that moves or fluctuates the most, it is the GBP/USD. If you would like to know more about how you can invest in and ...

Forex beginer?

Great! Good for you for getting your hands dirty... You choose your leverage depending upon how much stress you can take. 1:10 means $1 = $10 in your trade 1:200 means $1 in your trading ac...