Size for CFDs means total contract value (number of contracts x value per contract).
Size for spread bets means stake per point.
Closing price means underlying market price at 10pm (UK time).
If underlying instrument currency is GBP
Size × closing price × LIBOR +/- 2.5% ÷ 365 Based on one-month LIBOR
If underlying instrument currency is USD
Size × closing price × US LIBOR +/–2.5% ÷ 360
If underlying instrument currency is EUR
Size × closing price × EURIBOR +/–2.5% ÷ 360
Please note: when trading a non-standard GBP-denominated index CFD, or a mini contract on any asset class, the funding rate is +/-3% rather than +/-2.5%
Overnight funding for the following instruments is calculated in the same way as for commodities without fixed expiries: EU Volatility Index, French OAT, German Bobl/Bund/Buxl/Schatz, Italian BTP, Japanese Government Bond, UK Long Gilt, US 2-Year/5-Year/10-Year T-Note, US Dollar Basket, US Treasury Bond, US Ultra Treasury Bond, Volatility Index.
Prices on these markets for DFBs and 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 2.5% 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.
The formula used for calculating the overnight funding adjustment on these markets consists of three steps:
Basis (the daily movement along the futures curve)
(P3 – P2) ÷ (T2 – T1)
T1 = expiry date of the previous front future
T2 = expiry date of the front future
P2 = price of front future
P3 = price of next future
IG charge Price x 2.5% ÷ 360/365
(365-day divisor used for the FTSE 100 and other GBP, SGD and ZAR denominated markets. 360-day divisor used for all other markets.)
Bet size x (basis + IG charge)