If you keep a Cash CFD position open overnight (after 1am Dubai time) we will make an interest adjustment to your account, to reflect the cost of funding your position. The interest adjustment is based on relevant interest rate benchmark (eg. SONIA). 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 interbank rate. Eg. If the relevant interbank 1-month rate is 0.5%, you would be charged 3.00% (annualised). |
You receive the relevant interbank rate, minus 3%. If the interbank rate is greater than 3%, we credit your account; if the interbank rate is less than 3%, your account is debited. Eg. If the relevant interbank 1-month rate is 0.5%, you would be charged 2.00% (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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