Non FX Instruments

The financing LIBOR rate to use is determined by the base currency of the instrument.

If the client is long and uses percentage charging rates, the posting is settlement price divided by trading unit ratio times the quantity, then multiplied by the LIBOR rate plus the financing rate divided by 100 then 365.

If the client is short and uses percentage charging rates, then the formula is identical except that the financing rate is subtracted from the LIBOR rate.

For a client who has fixed charges, the quantity is multiplied by the long or short fixed charge.

If the client is long, the amount is made negative, i.e. it becomes a charge. For CFD rollovers financing this is the calculation (Settle price/ minimum px increment *size)*(effective rate/100/finance days*rollover days) Effective rate is calculated as follows:

If buy then
LIBOR rate + financing rate
If sell then
LIBOR rate - financing rate Example 1 -
For a Dow30 position Long 100 CFDs

LIBOR = 0.14333
Finance rate = 2
Settlement price = 11,539.25
Price Increment = 1
Finance days = 365
Rollover days = 1

(11539.25/1*100)*(2.14333 / 100 / 365 * 1)
= -$67.76

Example 2 -
For a Gold Spot position short 100 CFDs

LIBOR = 0.0.14333
Finance rate = 2
Settlement price = 11,539.25
Minimum px increment = 1
Finance days = 365
Rollover days = 1

(11,539.25/1*100)*(-1.85667 / 100 / 365 * 1)
= -$58.70

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