As CFDs are margined 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 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
- Short positions incur a financing markdown of -3% (classic/platinum accounts) or -2%
- 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