If you have an open position on your account at the end of each trading day (5pm ET), the position is considered to be held overnight and subject to either a financing charge or credit to reflect the cost of funding your position (in relation to the margin utilised). This charge or credit is based on the interbank rate.

The financing cost is calculated on a per position basis and may be a charge or a credit to your account, depending on whether you hold a buy/long position or a sell/short position, and after also taking into account the impact of our admin fee.

*where value of position = size of position x price at the end of trading day (5pm ET)

Simply select the instrument you wish to trade and it will calculate both the annualized funding rate (including the specific admin fee) and anticipated daily financing cost based on prevailing rates. Additionally, you will also see historic funding rates.

Rates are based on a blend of underlying liquidity providers’ tom-next SWAP rates, adjusted by the instrument specific admin fee, and annualized.

Rates include an admin fee of 2.5%, plus the relevant* alternative reference rate, annualized. This is represented by a negative rate, and hence a charge.

When the relevant* alternative reference rate is greater than our 2.5% admin fee, the rate used will be the difference between the two, annualized. This is represented by a positive rate, and therefore a credit.

When the relevant* alternative reference rate is lower than our 2.5% admin fee, the rate used will be the difference between the two, annualized. This is represented by a negative rate, and therefore a charge.

Different asset classes settle on different days.

FX, gold, and silver trades typically settle on a T+2 basis, which effectively means that weekend financing is usually applied two days earlier on Wednesdays (tripling the usual daily rate), although this timeline is similarly impacted by public holidays.

Indices typically factor in weekend financing on a Friday (tripling the usual daily rate), although this timeline is also similarly impacted by public holidays.

Accordingly, the actual funding rate on any given day may reflect more than one day’s costs.

No financing charges or credits are applied to clients’ accounts over the weekend. See our FAQs for examples of financing costs.

The prices of our commodity, metal (excluding gold and silver) and bond CFDs are based on underlying futures contracts. When an underlying futures contract is near expiry, we calculate the basis rate, which represents the difference in price between the expiring futures contract and the next futures contract.

From that point forward, our CFD price is calculated as the present value of the price of the next futures contract, using the basis rate for the present value calculation. The present value is calculated continuously, second-by-second.

Financing costs on commodity, metal (excluding gold and silver) and bond CFDs are therefore calculated on a continuous second-by-second basis.

For the duration of the trade the resultant financing charge/credit is debited/credited at the end of each day (5pm ET), including weekends and public holidays, and when the trade is closed.