Lessons

CFD Margin Interest Rate

Margin interest CFD (margin trading) is an additional amount that is due for the use of borrowed funds for the transfer of a position for the next day and is expressed as a percentage of these. The amount may be a positive or a negative number.If you have an open position on CFDs on stocks, … Continue reading CFD Margin Interest Rate
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Margin interest CFD (margin trading) is an additional amount that is due for the use of borrowed funds for the transfer of a position for the next day and is expressed as a percentage of these. The amount may be a positive or a negative number.
If you have an open position on CFDs on stocks, indexes, ETFs, or CTRs at the end of the business day that is transferred for the next day, interest is charged or deducted to your account.
Important: When trading CFDs at 100% Margin (Cash CFD), interest is not charged or deducted!
The interest rate that sets the interest you will pay or you will get for an open position is equal to the sum of:
the base interest rate for the currency in which the underlying instrument of the relevant CFD is traded;
the amount of the allowance (positive or negative) to the basic interest rate – depending on whether your position is short or long.
Important: The interest rate may be a positive or a negative number! Interest is calculated on the total position value (CFD x closing price) at the end of the business day. Detailed information can be found in the Deltastock Tariff of Interest, Fees and Commissions.
Interest is calculated using the following formula:
Interest (daily) = Number CFD1 × Closing Price × Interest Rate
360 days
1 In calculating the interest, the CFD number corresponding to the position at the end of the business day is taken.
If you have a long position, the interest will be deducted from your account.
If you have a short position, the interest will be charged to your account when the interest rate on the position is a positive number. The interest will be deducted if the interest rate on the position is a negative figure.
Interest is charged or deducted in the currency of the traded instrument. If your account is in another currency, then the amount of the interest will be recalculated (converted) in the currency in which your account is held – the respective currency pair closing rate is used.
Examples:
Please note that the prices and interest shown below are only indicative and do not reflect the current market situation.
1) You have a LONG position in CFD on an index:
– Position: 5 CFD
– Closing price: 6613,10 EUR
– 0,75% base interest plus 3,0% long-term interest margin equal to 3,75% interest on the position
5 CFD × 6613,10 EUR × (0,75 + 3,00) / (100 * 360) = 3,44 EUR
The interest amounting to EUR 3.44 will be deducted from your account because the position is long.
2) You have a SHORT CFD position on an index:
– Position: -5 CFD
– Closing price: 6613,10 EUR
– 0,75% base interest rate minus 3,0% short-term surplus is equal to -2,25% interest on the position
-5 CFD × 6613,10 EUR × (0,75 – 3,00) / (100 * 360) = 2,07 EUR
The interest rate of EUR 2.07 will be deducted from your account as the position is short but the interest rate on the position is a negative figure (-2.25).
3) You have an open SHOW / CFD position on an index:
– Position: -5 CFD
– Closing price: 6613,10 EUR;
– We assume that the basic interest rate has risen and is now 3.75%. The short-term allowance is minus 3.0%. the interest on the position becomes 0.75%
-5 CFD × 6613,10 EUR × (3,75 – 3,00) / (100 * 360) = -0,69 EUR
The interest rate of EUR 0.69 will be charged to your account because the position is short and the interest rate is a positive number (0.75).
4) You have a SHORT CFD position on an index:
– Position: -5 CFD
– Closing price: 6613,10 EUR;
– The base interest rate is 0.75%, but Deltastock lowers its 0.5% surplus. In this case, 0.75% minus 0.5% is equal to 0.25% interest on the position
-5 CFD × 6613.10 EUR × (0.75 – 0.50) / (100 * 360) = – 0.23 EUR
The interest rate of 0.23 EUR will be charged to your account because the position is short and the interest rate on the position is a positive number (0.25).

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