Overnight fees


overnight fees an overnight fee is an interest charged for holding a leveraged position overnight the capital contract form enables CFD trading CFDs are leveraged instruments this means an trade of deposits only part of the money needed for opening the position the rest of the funds are provided by a broker if you keep a CFD position open overnight we charge a fee to cover the cost of the money we provide you the fee is charged if you don’t close your position before the overnight fee time usually this is 2200 UTC we don’t charge any fees if you close your position before the overnight fee time on the same day using the capital complet form you can go long and short in other words buy and sell the two positions differ in terms of overnight fees if you go long you can always pay the interest yourself conversely if you have an open short position the interest can sometimes be credited to your account where to find the rates on the instrument page both mobile app and web versions offer detailed descriptions of all the available markets including daily overnight fee rates how is the overnight fee calculated let’s see how capital calm calculates the fee amount the rates for shares and indices are calculated the same way here’s how trade size times closing price times brackets 3% plus or minus LIBOR close brackets divided by a hundred percent divided by 365 or 364 example the number of shares the closing price is the instruments value at 2200 UTC LIBOR is a one-month interbank interest rate basically this is an interest rate that major banks charge to lend funds to one another brokers can use equivalent interest rates to adjust fees 3% is the broker’s interest this is what capital com charges to cover the risks of holding a clients position overnight whether we divide by 365 or 360 kappa on the currency the formula for GBP shares includes 365 360 is used for other currencies let’s add the numbers to the formula imagine you along on 10 CFDs on Netflix shares with a closing price of 260 US dollars the USD LIBOR that day is one point four four percent your overnight field will be ten shares times two hundred and sixty dollars times brackets three percent plus one point four four percent closed brackets divided by a hundred percent divided by 360 equals zero dollars and 32 cents this means you’ll be charged to 32 cents for holding this long position that overnight let’s move on to currency pairs overnight fees for Forex CFDs are calculated as trade size times in brackets Noor point seven percent plus or minus Tom next rate percent close brackets Tom next is short for tomorrow two next day this is the difference between the interest rates of the two currencies paired with one another moving on to commodities overnight fees for a commodities CFD are based on the holding costs of the underlying future contract the costs are used as our overnight fee rates they depend on the prices of front and next future contracts on a commodity the fee can either be debited from or credited to your account last but not least let’s look at how overnight fees work with crypto currencies these are extremely volatile markets which means capital com takes on extra risks for holding your crypto positions overnight overnight fees depend on the volatility rate of a crypto currency and can be reviewed and changed every day to find the current rate just go to the instrument details on the platform there are no guarantees in trending be aware of risks you

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