Home»Service Centre»Financial Products»How is CFD financing calculated and when is it charged?

How is CFD financing calculated and when is it charged?

Given that CFDs are margin products clients that hold long positions are effectively borrowing funds. When positions are held overnight, financing costs are charged on the borrowed amount. Intraday CFD positions do not attract financing charges.

Short positions may also attract financing charges because a mark-down applies. The effect may be that interest is debited rather than credited.

Financing charges apply to CFDs on single stocks and to CFDs on stock indices. Expiring CFDs (commodity and Forex CFDs, and interest rates CFDs) do not attract charges.

The commission for financing is calculated daily and charged monthly.

The trading conditions applying to you are shown in Cornèrtrader: go to Account >Trading Conditions > CFD Financing Conditions. The conditions for CFD index trackers are highlighted.

 

Historical CFD financing costs, too, are shown in Cornèrtrader:  go to Account > Accounting > CFD Finance Details