CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
When you hold a CFD position overnight, an overnight interest will apply. This interest reflects the cost of maintaining a leveraged position, as CFD trading involves borrowing funds.
How is overnight interest calculated?
Overnight interest depends on
- Market conditions: interest rates, borrow fees (for shorts), and other instrument-specific costs.
- Static markup: a fixed markup applied per instrument type.
Calculation formulas for the Daily overnight interest
Forex (FX) - calculated on position size (base currency units)
- Long (Buy): Quantity × Long overnight interest rate
- Short (Sell): Quantity × Short overnight interest rate
Non-Forex products - calculated on notional value
- Long (Buy): Quantity × Price × Long overnight interest rate
- Short (Sell): Quantity × Price × Short overnight interest rate
Currency and conversion
- Overnight interest is shown and charged in your account currency.
- For calculation purposes, we first compute it in:
- the base currency for FX pairs (e.g., EUR for EUR/USD), or
- the instrument currency for non-Forex products (e.g., GBP for Barclays),
and then convert it to your account currency using the current exchange rate.
- In your account history, we also show the equivalent amount in the base/instrument currency for reference
📄 Note
Long and short overnight interest rates are subject to daily market fluctuations and change every day.
How does overnight interest affect my account?
If the overnight interest rate is negative, a financing fee is deducted from your CFD account. If the overnight interest rate is positive, funds are credited to your CFD account.
Where can I find overnight interest rates?
These rates update daily and can be found in the Instrument Details section.
When is interest applied?
On regular weekdays, overnight interest is applied at 22:00 GMT from Monday to Thursday for positions still open at that time. For weekend positions, the fee is charged at 22:00 GMT on Sunday.
💡Example: Calculating the Overnight Interest for a EUR/USD Position
In this example, the instrument is EUR/USD and the position type is Long (Buy). The position size is 10,000 units (EUR). The daily long overnight interest rate is -0.0189%.
Daily overnight interest:
Daily overnight interest = €10,000 × (-0.0189%)
Daily overnight interest = €10,000 x (-0.000189)
Amount charged (daily) ≈ -€1.89
💡Example: Calculating the Overnight Holding Cost for stocks
In this example, the instrument is Barclays and the position type is Short (Sell). The instrument price is £4.40, the position size is 100 shares, and the daily short overnight interest rate is -0.0251%.
Calculate the position value:
Position Value = 100 × £4.40
Position Value = £440
Calculate daily overnight interest:
Daily overnight interest = £440 × (-0.0251%)
Daily overnight interest = £440 x (-0.000251)
Amount charged (daily) ≈ -£0.11