Vaco
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there should be no cost to short positions, if anything you should be getting paid interest on the margin when interest rates are a great deal higher.
mark to market explained below as is on cmc website.
Your Daily Statement
Mark to Market
Trading profit and loss is realised on your account balance on a daily basis. We will mark your position to the CMC Markets price at the end of each day and calculate the profit and loss for each of the positions you hold. This process is known as 'Mark-to-market'
We will then re-open your position the following day at the previous day's close price (less a small financing adjustment).
View this example
The above example shows a "Bet Position Summary" taken from a daily statement. In the example, there have been two trades on the account that day, Buy 2 UK100 @ 5236.00 and buy 1 UK100 @ 5209.00
The latest/close price we take for our rolling cash instruments is at 10pm London time. Daily trading P/L is calculated by working out the difference between each trade price and the latest/close price and multiplying that difference by the relevant stake for each trade.
The Buy 2 @ 5236 is marked against the close price of 5191. This is a difference of 45 points. With a stake of £2 per point, the P/L on this trade is 45 points x £2 stake = £90. Because the close price was lower than the trade price and the trade was a long trade or 'up-bet', the £90 is a loss.
The same is true for the second trade of £1 per point, where a difference of 18 points has led to a loss of £18 on the account.
The statement summarises the total P/L for each instrument and then totals the P/L for all instruments. In this example, the P/L for all instruments is a loss of £108
This figure of £108 is seen again in the cash activity section of the statement with an entry header of "bet mark to market". In the example below, £660 is the cash carried forward figure from the previous day's statement.
mark to market explained below as is on cmc website.
Your Daily Statement
Mark to Market
Trading profit and loss is realised on your account balance on a daily basis. We will mark your position to the CMC Markets price at the end of each day and calculate the profit and loss for each of the positions you hold. This process is known as 'Mark-to-market'
We will then re-open your position the following day at the previous day's close price (less a small financing adjustment).
View this example
The above example shows a "Bet Position Summary" taken from a daily statement. In the example, there have been two trades on the account that day, Buy 2 UK100 @ 5236.00 and buy 1 UK100 @ 5209.00
The latest/close price we take for our rolling cash instruments is at 10pm London time. Daily trading P/L is calculated by working out the difference between each trade price and the latest/close price and multiplying that difference by the relevant stake for each trade.
The Buy 2 @ 5236 is marked against the close price of 5191. This is a difference of 45 points. With a stake of £2 per point, the P/L on this trade is 45 points x £2 stake = £90. Because the close price was lower than the trade price and the trade was a long trade or 'up-bet', the £90 is a loss.
The same is true for the second trade of £1 per point, where a difference of 18 points has led to a loss of £18 on the account.
The statement summarises the total P/L for each instrument and then totals the P/L for all instruments. In this example, the P/L for all instruments is a loss of £108
This figure of £108 is seen again in the cash activity section of the statement with an entry header of "bet mark to market". In the example below, £660 is the cash carried forward figure from the previous day's statement.
Vaco
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and below is how the financing works.
How are financing adjustments calculated?
Financing is charged or paid on positions that are carried or held overnight. On short positions you will be credited, whereas on long positions you will debited.
The value of the adjustment will represent one night's cost of borrowing the notional value of your position
The adjustment is calculated using the London Inter-Bank Offer Rate (LIBOR) +3 % for long positions and -3% for Short positions.
View a financing example
Financing adjustments for Stock / Index bets are calculated by reference to the following:
Long positions 7.320600
Short positions 1.320600
Financing adjustments for Forex bets are TomNext swap rates.
The statement shows a position after trading of long 20 Long Vodafone Rolling Cash at a close price of £1.355 resulting in a notional position value of 20 x 100 x £1.355 = £2,710. This is the figure on which financing is charged.
The LIBOR rate on this day was 4.3206%. Financing is charged at LIBOR + 3% = 7.3206%
The calculation for this days financing charge is therefore: (£2,710 x 7.3206%) / 360 = £0.55108
To accommodate this charge, we make an adjustment to your next days opening price. A £20 per point position would lead to a point adjustment of 0.55108 / 20 = 0.02755
How are financing adjustments calculated?
Financing is charged or paid on positions that are carried or held overnight. On short positions you will be credited, whereas on long positions you will debited.
The value of the adjustment will represent one night's cost of borrowing the notional value of your position
The adjustment is calculated using the London Inter-Bank Offer Rate (LIBOR) +3 % for long positions and -3% for Short positions.
View a financing example
Financing adjustments for Stock / Index bets are calculated by reference to the following:
Long positions 7.320600
Short positions 1.320600
Financing adjustments for Forex bets are TomNext swap rates.
The statement shows a position after trading of long 20 Long Vodafone Rolling Cash at a close price of £1.355 resulting in a notional position value of 20 x 100 x £1.355 = £2,710. This is the figure on which financing is charged.
The LIBOR rate on this day was 4.3206%. Financing is charged at LIBOR + 3% = 7.3206%
The calculation for this days financing charge is therefore: (£2,710 x 7.3206%) / 360 = £0.55108
To accommodate this charge, we make an adjustment to your next days opening price. A £20 per point position would lead to a point adjustment of 0.55108 / 20 = 0.02755
Thanks for reply. I suppose it is really a matter of trust. I dont know if I am being a stupid but I am finding it difficult to match up closing prices, adjustment to account overnight on statment and then opening positions next day. Other spread betting companies simply show your opening price on each bet and running profit/loss and then price at which closed. Is it easier to track positions on cmc then I realise.
top trader
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"The adjustment is calculated using the London Inter-Bank Offer Rate (LIBOR) +3 % for long positions and -3% for Short positions. "
Libor is the rate that banks borrow from each other. BOE rate is the rate at which banks borrow from the central bank (BOE).
The BOE rate will be less than the libor when banks aren't lending enough to each other. The BOE then becomes a lender of last resort.
CMC pay if LIBOR rate is say HIGHER than 3%, if LIBOR is say 2% and if you are short they charge you (2%-3%= -1%).
Current UK base rate is 0.5%
Libor is the rate that banks borrow from each other. BOE rate is the rate at which banks borrow from the central bank (BOE).
The BOE rate will be less than the libor when banks aren't lending enough to each other. The BOE then becomes a lender of last resort.
CMC pay if LIBOR rate is say HIGHER than 3%, if LIBOR is say 2% and if you are short they charge you (2%-3%= -1%).
Current UK base rate is 0.5%
Vaco
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If you are short you are not charged you are payed but libor would have to be over 3% for you to recieve anything.
In theory if it is negative you should simply receive nothing BUT I know IG introduced this charge about 6 months ago so now you could be short AND still charged overnight funding. I think it is something to do with the SB firms being charged by their brokers!