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