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Cash Index CFD Financing Example
If Cash Index CFD position is held overnight in account (at 05:00 AM SGT) it will be subjected to Index financing. Index financing will be received or paid to the accounts based on the interest calculation on position value of overnight position as described below:
Long position financing = Position Value * (Base rate + Financing rate)/Number of days in year
Short position financing = Position Value * (Base rate - Financing rate)/Number of days in year
Index Financing Example 1 -- Long position
Index CFD: AX200.IXC
Long position quantity: 20
Close Price: 5,510
Position Value = Quantity * Close Price = 20 * 5,510 = AUD 110,200
Base rate = 1.75%
Financing rate = 3.75%
Number of Year days = 365
Long position financing paid = 110,200 * (1.75% + 3.75%)/365 = AUD 16.60
Index Financing Example 2 -- Short position
Index CFD: US30.IXC
Long position quantity: 10
Close Price: 18,400
Position Value = Quantity * Close Price = 10 * 18,400 = USD 184,000
Base rate = 0.55%
Financing rate = 3.75%
Number of Year days = 360
Short position financing paid = 184,000 * (0.55% - 3.75%)/360 = USD 16.35