I am a Business Analyst working on a requirement around giving Sales users the ability to add a Spot markup on an FX Swap.
I just wanted to understand the relationship between Trader Spot, Spot Markup and Client Spot and if the relationship (formulae) is the same across all FX Swap combination i.e uneven with Near leg notional higher than far leg notional vs. uneven Far Leg notional higher than the near leg notional.
Is it that the Spot markup is always added to the trader Spot for an RHS use case (i.e Client Sell/Buy EUR vs. USD) and gets subtracted from the trader Spot for an LHS use case (i.e Client Buy/Sell EUR vs. USD) or are there considerations around whether the mismatch is higher on the near or the far leg.
Is Spot markup relevant to even Swaps and if relevant, is the treatment of the Spot markup different for an even Swap vs. uneven Swap?
Appreciate your kind help