Calculating CFD financing
- Due to the fact that CFDs are margin products and long positions result in the borrowing of funds by the client, financing costs apply to the borrowed amount if the long position is held overnight. Intraday CFD positions are not charged financing.
- As they are subject to a mark down, short positions may also result in financing costs, which may result in the interest credit becoming an interest debit.
- Financing is charged on CFDs on single stocks and stock indices, but not on expiring CFDs (commodity and Forex CFDs, and some stock index CFDs).
- The financing commission is calculated daily and charged on a monthly basis.