CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.
If you hold a short-term trade and want to keep it open overnight, you’ll be charged a daily interest fee.
This charge will be applied to cash CFD positions held through 10pm (UK time).
Futures and forwards don’t incur overnight funding charges, but they do have wider spreads. These contracts are typically used for longer-term trades.
Why is overnight funding charged?
When trading CFD, you’re using leverage. This means you are effectively being lent the money required to open your position, outside the initial deposit you’ve paid. To keep your position open after 10pm (UK time), an interest adjustment will be made to your account to reflect the cost of funding your position overnight.
How can I see what I've been charged?
Overnight funding charges appear as separate transactions on your account and won’t affect your running profit/loss. A statement which contains all trades and associated charges is automatically sent to your registered email address at the end of each day.
Indices
For each day that a cash CFD position is open on a stock index, adjustments are calculated to reflect the effect of interest and dividends (if applicable).
Please also note that we price our Volatility Index (VIX) and EU volatility Index contracts in a different way to the rest of our cash index markets. Please refer to the 'other markets' section further below. |
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Formula:
Number of contracts x value per contract x price x (3% admin fee +/- adjusted ARR) ÷ 365
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| * Price = price at 10pm (UK time) + if long – if short 365-day divisor used for the FTSE 100 and other GBP, SGD and ZAR denominated markets. 360-day divisor used for all other markets. |
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Example:
You’re short two contracts on the US Tech 100
*We use SOFR and the 360-day divisor since you're trading the US index in USD
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Shares & ETFs
Cost currency is determined by the currency of the underlying asset for CFDs. |
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Formula:
Number of contracts x value per contract x price x (3%* +/- ARR*) ÷ 360
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* Price = price at 10pm (UK time) + if long – if short |
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Example:
You’re long 1500 contracts on Commonwealth Bank of Australia |
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Forex
| For forex and spot metals deals, we charge the tom-next rate plus an admin fee of 0.8% (mini) / 0.5% (standard) What is the tom-next rate? Find out more here. Please note that forex positions held through Wednesday 10pm (UK time) will incur three days’ worth of tom next charge and one day of admin fee to cover the settlement of trades over the weekend. This is because FX settles on a T+2 basis. Therefore, when a position is held through Wednesday 10pm (UK time) it’s effectively being held through the weekend as positions can’t be settled until after Friday 10 pm (UK time). Subsequently, holding through Friday will only incur one day’s worth of tom next charge. Please note that open positions held through Friday 10pm (UK time) will be adjusted for three days’ worth of admin charge and one day of tom next charge to cover the weekend. |
Formula: Long:
Example: You’re long one EUR/USD $10 contract
Note: the swap bid / swap offer rates displayed on the platform is an estimated all-inclusive rate (Tomnext charge + IG admin) |
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What is the base calculation for FX funding? |
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Formula:
There are three steps to this formula:
1. Value
2. Swap rate
When going short:
When going long:
3. Cost Number of contracts x value of contract x swap rate
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Example:
You’re short one EUR/USD standard lot
*This is a credit since the bid interest rate is lower than the offer rate and you are holding a short position.
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Commodities
| Prices for commodity cash CFDs are synthetically created using the two most liquid futures contracts. This will result in a natural movement between these two contract prices and will be included in overnight funding adjustments. You’ll then either be debited or credited depending if you’re long or short, and whether the next future contract price is higher or lower. To find out more on how we price our commodities, please click here. Commodity funding is based on the market cost of carry, plus an admin fee of 3% per annum. Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend.
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Formula:
There are three steps to this formula:
1. Basis (the daily movement along the futures curve) (P3 – P2) ÷ (T2 – T1) T1 = expiry date of the previous front future
2. IG charge Price x 3% ÷ 360
3. Adjustment Bet size x (basis + IG charge)
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Example:
You’re short one A$10 contract on Oil – US Crude
*$18.72 will be credited to your account as you were short, and the next future contract was higher than the front contract.
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Cryptocurrencies
If you are long, for Bitcoin you will pay a daily overnight funding charge of 0.0694% (25% per Annum) for positions held at 10pm UK time. For Ether/Bitcoin, and Bitcoin Cash/Bitcoin and Crypto 10 you will pay 0.0625% (22.5% per annum). For all other cryptocurrency positions you will pay 0.0764% (27.5% per-annum). |
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Formula:
Long position:
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Example: You are short 1 contract of Bitcoin The contract value is $1 The current price is 30,000 Cost = (1 x $1 x 30,000) x 0.0139% = $30,000 x 0.0139% = $4.17 Client will receive $4.17 funding per day. |
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| Cryptocurrencies | If you are long, for Bitcoin you will pay a daily overnight funding charge of 0.0694% (25% per Annum) for positions held at 10pm UK time. For Ether/Bitcoin, and Bitcoin Cash/Bitcoin and Crypto 10 you will pay 0.0625% (22.5% per annum). For all other cryptocurrency positions you will pay 0.0764% (27.5% per-annum). |
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Formula:
Long position:
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Example: You are short 1 contract of Bitcoin The contract value is $1 The current price is 30,000 Cost = (1 x $1 x 30,000) x 0.0139% = $30,000 x 0.0139% = $4.17 Client will receive $4.17 funding per day. |
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Other markets
| Overnight funding for the following instruments is calculated in the same way as for commodities without fixed expiries: EU Volatility Index and Volatility Index. Prices on these markets for cash CFDs are synthetically created using the two most liquid futures contracts. This will result in a natural movement between these two contract prices and will be included in overnight funding adjustments. You’ll then either be debited or credited depending if you’re long or short, and whether the next future contract price is higher or lower. Funding is based on the market cost of carry, plus an admin fee of 3% per annum. Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend. |
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Formula:
There are three steps to this formula: (P3 – P2) ÷ (T2 – T1) T1 = expiry date of the previous front future Price x 3% ÷ 360/365 (No. of contracts x value per contract) x (basis + IG charge)
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365-day divisor used for the FTSE 100 and other GBP, SGD and ZAR denominated markets. This divisor will also be applied to all commodities denominated in CNH. |
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Example:
You’re short 100 contracts on the Volatility Index
*$2.9 will be credited to your account as you were short, and the next future contract was higher than the front contract.
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