Financing Charge Calculation- Index CFD
Financing cost = ((100 x 9140.00) x (-0.25%-3.0%)) / 360 = 82.51 Euro
Example: UK100 long 250 units CFD, the price is 5875.00, the base currency of the account is GBP, and the GBP LIBOR interest rate is 0.50%,
Financing cost = ((250 x 5875.00) x (0.50% + 3.0%)) / 365 = GBP 140.84
Short financing cost = nominal value of transaction type x (subject interest rate-interest income) / number of days
Example: DE30 short 100 units CFD, the price is 9140.00, the account base currency is Euro, and the Euro LIBOR interest rate is -0.25%.
Financing cost = ((100 x 9140.00) x (-0.25%-3.0%)) / 360 = EUR 82.51
Financing Charge Calculation- Spot Forex
Swap rates are calculated by using 1 day interest rate differentials for the two currencies concerned in the positon.
FX Long Position Financing Cost = Quantity x Swap Rate x (-1) Example: Long 500,000 USD/JPY at 17:00 ET, GBP based account. Financing Cost = 500,000 x (-0.0008) [Swap Rate] x (-1) = JPY 400
To convert back to account currency GBP/JPY = 157.10 Financing Cost in Account Currency = 400/157.10 = GBP 2.54
FX Short Position Financing Cost = Quantity x Swap Rate Example: Short 200,000 EUR/USD at 17:00 ET, USD based account. Financing Cost = 200,000 x 0.000019 [Swap Rate] = USD 3.80
Note: The above interest is for reference only.