  HOLDING POSITION OVERNIGHT |
If you carry a Share CFD position overnight, it will incur a financing cost or benefit. Finance costs/benefits will be on 100% of the value of your exposure in the market. If you are long, you may have to pay interest to Boston Merchant; if you are short, you may receive interest
 How to calculate the finance rate using a Share CFD example
 Long Trading Position
You wish to buy 1000 Shares of CFDs at $10.00 and decide to hold the position overnight.
- 1000 x $10.00 = $10,000.00 – this is the value of your total position.
You are then charged interest at the official overnight cash rate of 2%+ prime of 5.25%. This is then multiplied by your total market exposure, and then divided by 365 days in the year to give your daily overnight rate.
5.25%* - 3.5% = 1.75% |
$10,000 x 1.75% = $175 |
$175/365 = $0.48 |
- $0.48 will be credited to your trading account for every night you hold this position.
Short Trading Position
You wish to sell 1000 Shares of CFDs at $10.00 and decide to hold the position overnight.
- 1000 x $10.00 = $10,000.00 – this is the value of your total position.
You are then credited an amount calculated by using the official overnight cash rate less 3.5%
This is then multiplied by your total market exposure, and then divided by 365 days in the year to determine the daily overnight rate paid to you.
5.25%* + 3.5% = 1.75% |
$10,000 x 1.75% = $175 |
$175/365 = $0.48 |
- $0.48 will be credited from your trading account for every night you hold this position.
* Rates based on the official overnight cash rate. This rate is subject to daily market fluctuations. |
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Risk Warning: CFDs are margined products; it is possible to lose more than your initial margin deposit or credit allocation as well as any variation margin that you may be required to deposit from time to time. Therefore you should only speculate with money that you can afford to lose.