What is the Single Share CFD financing cost?
At FXCM, the financing cost for your CFD trade is referred to as ‘rollover.' This is the interest paid for holding a position past 5 PM EST and is based on the size of the position.
The formula for financing cost is as follows:
[Yesterday’s Closing Price of the Share * [(the relevant 1-month LIBOR or Sonia rate/100) + FXCM’s Markup]/Number of Days] * Trade Size * 0.1
Days in a year – 360 for US, HK and EU Share CFDs and 365 for UK Share CFDs.
Note that the financing markup for long positions on CFDs is +5.25% and for short positions is 2.75%.
Financing costs are rounded to five decimals.
To account for holding a position into the weekend, there is a 3X rollover on Fridays. Additionally there is no rollover on holidays, but an extra days’ worth of rollover before the holiday.
To avoid rollover, you can close your position before Daily Market Close or 5PM EST and the charge would not apply.
Upcoming dividends may also impact overnight holding costs, for more information regarding upcoming Share dividends please click here.