CFD holding costs

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At the end of each day (at 17:00 New York time), CFD positions held in your account may be subject to a commission called the “retention cost”. The retention cost can be positive or negative, depending on the direction of your transaction and the applicable retention rate. Historical retention rates, expressed as an annual interest rate, can be seen on our platform in the overview section for each product.

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The overnight special commission for CFD in the promotion is calculated based on the basic interbank rate for the monetary unit of the respective promotion (see table below), with a 0.0082% advantage for acquisition positions and a 0.0082% disadvantage for disposal positions.

The withholding price is charged due to the view to purchase and charged due to the view to sell, due to the situation if the basic interbank amount is the same or less than 0.0082%; in this case due to the view to sell the withholding price can be charged, which will be taken from the currency money in your account. Rates of withholding according to transactions in realization have all chances besides to contain the auxiliary correction in the commission because of the involvement of loan money according to promotions which have the most significant price of borrowing in the base trade. These fees due to the involvement of loan money can be substantial and are subject to huge changes in the presence of an increase in the short-term interest in the promotions. Please consider this ancillary risk/fee when deciding on transactions for single promotions.

Indices

Holding rates during the days for index CFDs are formed in the base interbank rate according to the index (see table below), advantage of 0.0082% for acquisition positions and a disadvantage of 0.0082% for realization positions.

Foreign exchange

Overnight position holding rates for CFDs in forex are formed based on tom-next (tomorrow-next period) direction in the base trade according to the monetary two and are shown in annual percentages.

Amount of withholding in acquisition = tom-next rate % + 0,0027%

Amount of withholding for realization = tom-next rate % – 0,0027%.

For positions in acquisition and realization, different rates are formed, which are rapidly traded among banks. Tom-next rates in the basic trade are formed based on the difference of profitable ponds according to 2 monetary units. Just as a principle, in case the profit amount of 1 above-mentioned monetary unit is earlier than the 2nd above-mentioned monetary unit in a forex pair (together with taking into account the correction shown earlier), and you take the deal into acquisition, the holding price will be credited to your result. Conversely, if in this case, you take the transaction into realization, in such a case the retention price will be rolled up together with your immeasurable.

Commodities and treasuries

The retention rates under CFD in-the-money products and treasury contracts are based on the estimated retention costs assumed in the underlying futures contracts, which are the basis on which the values of our available products and treasury commodities are created. Available value is the value of provisions that do not have a fixed expiration or settlement date. In the value of our available commodity and treasury goods, this relative preservation price (as presented earlier) is subtracted to form our permanent “cash” value. The assumed daily saving price is used in the property of our saving price, which can be positive as well as negative.

Our money products and treasury loan capital enable us to trade based on a constant value, which, unlike forward products and treasury bonds, is in no way dependent on the expiration date of the exposure time.

Applying the basic principles of information about the underlying futures values, our automated pricing concept calculates abstract financial values for any available product and treasury by a line of addition or subtraction (due to conditions) of the allowed holding price. Based on the abstract currency values, our automated pricing concept creates value depth ladders with up to 10 depth degrees for any available product and treasury. Any degree directly reflects the size, that it is possible to purchase according to the concrete cost, thus the size and the suitable spread increase according to the facet of advancement downwards according to the ladder. More about rough trading.

Assumed holding price, advantage or disadvantage “haircut”, every day is used to the positions taken at Seventeen:00 (according to New York period), in property of daily holding price.

The value of our currency provision is based on a faster realizable futures contract, or the underlying contract, for this reason, with the period, according to the approach of the time of expiration of the underlying futures, the original contract will change, which usually coincides with the dates of execution of our forward instruments.

Before any change of the original contract, a reasonable amount of the holding price is calculated and fixed, which implies the difference between the typical value of the “next” original contract and the typical value of our current currency money. Any time, I renew my main contract, the amount of the retention price is recalculated together with the change.

In rare cases, our currency value can be based not on the discounted value of the futures in the first month, but on the later expiration date of the contract in conjunction with the trading criteria of the underlying product.

Simplified calculation used to generate the annual holding cost rate price for cash commodities and treasuries

  1. Subtract the average price of the current cash price from the average price of the next primary contract to get the price difference
  2. Calculate the number of days to expiration of the next primary contract and the current contract.
  3. Divide the price difference by the number of days to expiration and multiply by 365 to get the annualized price difference
  4. Divide the annualized price difference by the cash price to get the average interest rate
  5. Offer or long position = (interest rate average + (the maximum of (absolute value of interest rate average x “haircut”) or 3%)) x -1
  6. Ask or short position = (interest rate average rate – (maximum of (absolute value of (absolute value of interest rate average rate x haircut) or 3%))) x -1

Example

Suppose the primary Brent crude oil contract moved from June to July on April 28 at about 9:30 pm (UK time).

  1. Brent crude oil futures for July at an average price of 47.48 – Brent crude oil cash futures at an average price of 47.79 = -0.31
  2. July contract expires May 30 – April 28 = 33 days
  3. -0.31 / 33 x 365 = -3.42879
  4. -3.42879 / 47.79 = -7.175%
  5. Bid or long position = (-7.175% + 3%) x -1 = 4.175%
  6. Ask or short position = (-7.175% – 3%) x -1 = 10.175%

Forward contracts

A forward contract is a product with a fixed expiration or settlement date, upon reaching which open positions will be settled at the closing price. Index, currency, commodity, and Treasury forward contracts are not subject to retention costs.

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