overnight financing charge

[Spread better]

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

 

[stevespray]

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

On?

 

[Jaydee]

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]

Ftse 100

 

[Spread better]

thnx

 

[Jaydee]

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

 

[Spread better]

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

 

[Spread better]

?

 

[Jaydee]

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]

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

 

[Jaydee]

Multiply the price by the bet size

 

[Jaydee]

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