When you trade options or CFDs with us, you trade on leverage. This means you provide only a part of the notional value of your exposure, and we in effect lend you the rest of the notional value. If you close your position on the same day, there is no funding fee. If you keep it open overnight, we charge a small fee to cover the cost of the money you’ve effectively borrowed.
For share and stock index trades, this funding fee is the relevant interbank rate for your traded currency, plus or minus our small admin fee, depending on if your position is long or short.
For forex and spot metals trades, it is the tom-next rate plus a small admin fee.
For futures markets there is no overnight funding fee because the cost of funding is built into the spread.