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If you carry a CFD position overnight, it will incur a rollover charge or credit. If you are long, you may have to pay rollover fees to Bacera International; if you are short, you may receive rollover credit from Bacera International.
How to calculate the finance rate using a CFD example:
| Long Trading Position |
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| You wish to buy 2000 CFDs at USD $20.00 and decide to hold the position overnight. |
- 2000 x $20.00 = $40,000 USD - This is the value of your position.
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| You are then charged interest at the official overnight cash rate +2.0% - a typical adjustment for a leveraged product. |
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| This is then multiplied by your total market exposure, and then divided by 365 days in the year to give your daily overnight rate. |
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| 5.50%* + 2.0% = 7.50% |
| $40,000 x 7.50% = $3000 USD |
| $3000/365 = $8.21 USD |
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- $8.21 will be debited from your trading account for every night you hold this position.
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| Short trading position |
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| You wish to sell 2000 CFDs at USD $20.00 and decide to hold the position overnight. |
- 2000 x $20.00 = $40,000 - This is the value of your position.
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| You are then credited an amount calculated by using the official overnight cash rate less 2.0% - a typical adjustment for a leveraged product. |
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| 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. |
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| 5.50%* - 2.0% = 3.50% |
| $40,000 x 3.50% = $1400 USD |
| $1400/365 = $3.84 |
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- $3.84 will be credited to your trading account for every night you hold this position.
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This above formula is an approximation meant to serve as a guide - interest rates, like currencies are a market as well, with momentum, spreads, market sentiment, demand, supply, and other events incorporated into the price. As such the market's rollover values may or may not precisely reflect the formula.
* Rates based on the official overnight cash rate. This rate is subject to daily market fluctuations. |
