Due to the fact that CFDs at Saxo are margin products, you finance the traded value through an overnight credit/debit charge. If you open and close a CFD position within the same trading day, you are not subject to overnight financing. When you hold a CFD position overnight, your CFD position will consequently be subject to credit or debit.
Financing is charged on Index or Single Stock (Single Stock and ETFs/ETCs) CFD positions - but not on expiring CFDs (Commodity and Forex CFDs, and some Stock Index CFDs)
The CFD financing is calculated daily and charged on a monthly basis.
When you hold an Index or Single Stock (Single Stock and ETFs/ETCs) CFD position overnight your position will be subject to the following credit or debit:
- Long positions incur a financing markup of +3% (classic/platinum accounts) or +2% (VIP accounts).
- Short positions incur a financing markdown of -3% (classic/platinum accounts) or -2% (VIP accounts).
CFD Finance Calculation
Long positions: Number of CFDs x Stock or Index value x (Relevant Inter-Bank Offer Rate +3% or +2%) x Number of days held/365)
Short positions: Number of CFDs x Stock or Index value x (Relevant Inter-Bank Bid Rate -3% or -2%) x Number of days held/365)
Please note:
- A floor will apply to the relevant Inter-Bank Bid/Offer Rate, i.e. if the Inter-Bank Rate is negative, then it will be excluded from the financing calculation.
- If the calculated financing rate on a short position (Inter-Bank Bid Rate – mark-down) is negative, then the financing credit will become a financing charge
CFD Finance Calculation details:
Here is an example of calculating Single Stock CFD finance charge on a long position for 3 days.
Barclays Plc CFD position value (Picture 1): GBP 3,099.20 ((2,000 x 154.96) / 100). Please note, that the CFD /stock price is in GBp, that is why we divide it by 100.
Number of interest days : 3 days
The applied rate (including a markup / markdown): 3.73%
Quotation (in day convention): 365
Therefore the interest can be calculated as follows (Picture 2):
3,099.20 x 3.73% x 3
____________________ = - 0.95
365
Picture 1
To view historical CFD financing costs, go to Historic Reports > CFD Finance Details (see an example below).
Picture 2
