cost of rolling over bets

[oriana]

Can anyone tell me how much it costs to roll over bets. For example, if I bought the Dax index for £1 a point, how much would this cost me per day to roll over? Likewise, if I sold it instead of bought, would I receive the same amount?

Also does this also apply to the monthly contracts, eg. March Dax, and if so, does it cost more than the cash bet to roll over or the same?

Thanks.

 

[lucas_king]

It depends on what the firm you are using charge for overnight financing. The firm that I use charge 2.5% +/- LIBOR (London Interbank Offer Rate) which currently sits at about 0.6%. For the ease of maths let say it’s at 0.5%. Below is what I would generally get charged, however check what you are being charged and following formula.

DAX @ 8590
LIBOR @ 0.5%

A Long position = £1 x 8590 x 3% / 365 = 70.6p per night
A Short position = £1 x 8590 x 2% / 47.1p per night (you would not receive money until LIBOR is above 2.5%)

Overnight financing does not apply to future contracts, however the spread will be wider than the rolling daily.