When you keep a CFD position open overnight, you will incur overnight financing costs. The amount you receive or pay as overnight interest depends on the type of position (long or short) and the overnight interest rate of the instrument. Positions that are opened and closed within the same trading day are not subject to overnight financing.
How do I calculate the overnight holding rate?
Quantity x Overnight Holding Rate (instrument/position) * Number of Nights
Long “Buy” position of 100 Gold units for seven nights.
100 x (-0.1713544) x 7 = -119,94 USD
If the traded instrument is Forex, the rate is calculated in the second currency of the couple. Every other instrument’s rate will be calculated in the currency in which the instrument is traded (e.g. Gold is traded in USD). If your account is in a different currency than the traded instrument, then the current exchange rate between the two currencies will apply.
The overnight holding fee is applied at 17:00 ET (Monday to Thursday) for open positions. For positions held over the weekend (Friday to Sunday), the fee is collectively applied on Sunday at 17:00 ET. You'll be able to find the overnight holding rate for your short or long position in the instrument's additional information through the web-based app or on our Mobile App.