Lets say for example my TN for USDHKD point per day spot is -1.9467 and for 1mnth it is -1.4142 and the notional is 100m HKD dollars.

Would you say more or less I would be flat in terms of funding ? do I calcuate the funding for holding the 1 month positon by doing cost = ( ppd x amount $$ x days ) you do that for tn and 1mnth ppds and basically you get the difference and would that be your funding cost ?

Moreover , if we are negative points does this mean we are recieving and if we are positive we are paying ? From my understandinf if you are positive it means you are paying for the positions.

Please help me understand funding in fx swaps. How do I know that that my funding will be expesnive ? how do I know if fudning for dollars will be expensive?

  • $\begingroup$ Usually 1 mo FX swap is between Spot Date and date one month forward. Not clear to me why you quote TN (Tomorrow Next) points as well. $\endgroup$
    – nbbo2
    Oct 27, 2023 at 7:53
  • $\begingroup$ It may also help if you clarify which of the 2 currencies you have and which you are trying to borrow. $\endgroup$
    – nbbo2
    Oct 27, 2023 at 11:41
  • 1
    $\begingroup$ it cuz convention wise usd hkd is t + 2 , whereas usdcad t + 1 . I am trying to borrow dollars. I am short HKD in my cashflow and I have given you the points. $\endgroup$
    – EarlyFx
    Oct 27, 2023 at 13:19


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