What is the Index CFD financing cost?
At FXCM, the financing cost for your CFD trade is referred to as ‘rollover.' This is the interest paid or earned for holding a position past 5 PM EST and is based on the size of the position. For Index CFDs, any dividends issued are included in the rollover amount as well. The formula for rollover is as follows:
[Closing Price of the Index * [(the relevant 1-month LIBOR or SONIA rate/100) - FXCM’s Markup]/Number of Days] +- Dividends * Trade Size
Note that the financing markup for long positions on CFDs is 3%. For short positions, this markup is currently 0% and will be 2% starting November 28th, 2016.
To account for holding a position into the weekend, there is a 3X rollover on Wednesdays for XAU/USD and XAG/USD and 3X rollover on Fridays for other CFD products. Additionally there is no rollover on holidays, but an extra days’ worth of rollover before the holiday.
Please click here to view a table that indicates how many days of rollover will be applied to open positions at 5pm EST on each trading day.
To avoid rollover, you can close your position before 5PM EST and the charge would not apply.