Financing is calculated on rolling bet positions held overnight and
is credited or debited on the next trading day. If you are holding
a long rolling bet position (i.e. an up bet, equivalent to being
long on the underlying Index), you pay the financing and if you are
holding a short rolling bet position, you receive the
financing.
Financing rates are calculated using the Interest rate of the
currency that the underlying product is based in (e.g. US$ for the
Wall Street Market), plus or minus a ‘haircut rate’. Please call us
for current rates.
Example
Long £10 per point of the Dax 30 Rolling Bet.
The financing rate might be Euro Rate + 225 bps, which might
equate to 4.25% (2.0% + 2.25%).
If the end of day price is 4500, and you bought £10 per point,
the overnight financing is calculated as follows:
10 x 4500 x 0.0425 / 365 = £5.24
This will be debited from your account overnight.
Dividend adjustments
Your account will be credited or debited overnight following an
ex-dividend event, to reflect the net effect of any dividend
payments affecting the underlying index.
As attached orders such as stoplosses are automatically rolled
overnight with the open bet but without any adjustment for the
dividend, please be aware that the corresponding adjustment to the
market price reflecting a dividend payment may cause such orders to
be triggered.