If you keep a Cash CFD position open overnight after 10pm (UK time) we will make an interest adjustment to your account, to reflect the cost of funding your position. We debit your account if your position is long, and credit your account for a short position – if the interbank funding rate is greater than 3%.*
For nearly all our markets, this is calculated in the same way for CFDs. When trading forex, the funding cost is calculated differently. See the table below.
| Long positions | Short positions | Forex positions |
|---|---|---|
| We charge 3% above the relevant interest rate benchmark. Eg. If the interest rate benchmark is 0.5%, you would be charged 3.00% (annualised). |
You receive the relevant interest rate benchmark, minus 3%. If the interest rate benchmark is greater than 3%, we credit your account; if the interest rate benchmark is less than 3%, your account is debited. Eg. If the interest rate benchmark is 0.5%, you would be charged 2.5% (annualised). |
For forex positions, we charge funding based on the current tom-next rate. Tom-next shows, in points, the difference between the interest paid to borrow the currency that is being notionally sold, and the interest received from holding the currency. |
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