For CFDs written on the spot rate of an underlying asset, 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.
Additional information about CFD Financing on Index Tracker CFDs and Single Stock CFDs and ETF/ETC CFDs can be found here.
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 CFD financing is calculated daily and charged on a monthly basis.
Here is an example of calculating Single Stock CFD finance charge on a long position for 1 day.
CFD Finance calculated as follows:
CFD Finance = (Open Position Amount x Price x (Interest Rate + (Markup or Markdown))) / 100 x Number of days / quotation (in day convention)
CFD Finance Calculation details:
Banco BPM CFD position value (Picture 1): EUR 27,660.00 (1,500 x 18.44000)
Number of interest days : 1 day
The applied rate (including a markup / markdown): 3.50%
Quotation (in day convention): 360
Therefore the interest can be calculated as follows (Picture 2):
27,660.00 x 3.5%
____________________ = - 2.69
360
Picture 1
To view historical CFD financing costs, go to Historic Reports > CFD Finance Details (see an example below).
Picture 2
