Support Centre for Saxo Bank A/S

How is CFD financing calculated and when is it charged?

Due to the fact that CFDs are margin products and long positions result in the borrowing of funds by the client, financing costs apply to the borrowed amount if the long position is held overnight. Intraday CFD positions are not charged financing. Short positions may also result in financing costs, as they are subject to a mark down, which may result in the interest credit becoming an interest debit.

Financing is charged on CFDs on single stocks and stock indices - but not on expiring CFDs (commodity and Forex CFDs, and some stock index CFDs)

The financing commission is calculated daily and charged on a monthly basis.

To view your trading conditions, in SaxoTrader go to "Account" - "Trading Conditions" - "CFD Financing Conditions" - here the conditions for CFD index trackers are highlighted:

Click image to open full screen.


To view historical CFD financing costs, in SaxoTrader go to Account > Accounting > CFD Finance Details (on SaxoTraderGO: Account > Reports > CFD Finance Details):

Click image to open full screen.


Looking at the first example in the above image, the GER30.I CFD position, the Position Value was EUR 48367.50 (see "Position Value"), it was held open for 3 days (see "Interest Days"), the applied rate was 2.50% (so essentially the interbank rate was 0, and only the mark up of 2.50% was applied).

Therefore the interest can be calculated as follows:

                                                 48367.50% x 3 x 2.5%
                    - 10.08    =           ____________________

                                                                  360

               CFD Interest =       Position Value x Interest Days x Applied Rate
                                           ___________________________________
                                                                       360


Additional information can be found here.


 

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