overnight financing charge

Spread better · Jun 30, 2008

Does anyone know the coreect calculation for the overnight financing charge, it would be much appreciated.

stevespray · Jun 30, 2008

Spread better said:
Does anyone know the coreect calculation for the overnight financing charge, it would be much appreciated.

On?

Jaydee · Jun 30, 2008

If you're long it's:

[(LIBOR + p )/365] x total amount position is worth at close price

If short subtract p

p is a specific amount of interest the spreadbet firm charges and you would have to ask them for that

Spread better · Jun 30, 2008

Ftse 100

Spread better · Jun 30, 2008

Jaydee · Jun 30, 2008

Sorry, didn't mean total amount position is worth, meant the total amount it was worth at your entry price.

Spread better · Jun 30, 2008

so the formula is, if long, [(libor+p)/365)] x entry price

Spread better · Jun 30, 2008

Jaydee · Jun 30, 2008

Spread better said:
so the formula is, if long, [(libor+p)/365)] x entry price

No, the total amount your position is worth at the entry price.

The value of the position will change as the market moves but you will only be charged from where you bought or sold it.

Spread better · Jun 30, 2008

so how do i calculate how much my position is worth?

Jaydee · Jun 30, 2008

Multiply the price by the bet size

Jaydee · Jun 30, 2008

Got it wrong again...use the close price not the entry price. Sorry for the confusion...late night last night - doh

overnight financing charge

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