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This is multiplied by your total market exposure and divided by 365 (days in the year), to give you the daily Overnight rate.


3% – 2.5% = 0.5% on $12,600 x 0.5% = $63 ÷ 365 = $0.17


This calculation will be made and applied to your account for every night you hold the position. Had you gone long (bought) Ford you would pay $1.90 for every night the position was held, calculated at LIBOR + 2.5%.


3% + 2.5% = 5.5% on $12,600 x 5.5% = $693 ÷ 365 = $1.90


The rate is subject to daily market fluctuations. Should the applicable interest rate fall below 2.5% (for example to 0.5%), you will be charged for holding a short position; i.e.:


0.5% – 2.5% = –2% on $12,600 x 2% = $252 ÷ 365 = $0.70


When you trade using margin, we’re effectively loaning you money to cover the cost of your trading position, which means we will make a charge for this.


To find out more


Price to sell Ford


Number of share CFDs bought Value of position (1,000 x 11.94) Stamp Duty Commission


Closing value of share CFDs Opening value of share CFDs Profit on trade


Total commission Financing (10 days) Overall profit on trade


1194 cents 1,000


$11,940 (£7,901) 0


£20


£7,901 £8,337 £436 (£40) $1.70


£397.10


Two weeks later you decide to close your position as the value of Ford has fallen, as anticipated, and is currently trading at $11.94 to buy. You buy the entire position of 1,000 share CFDs to close your position.


If you hold a Fixed Risk Account and the share price have moved up during this period above the guaranteed stop level of 1386 cents your position would have been closed at that price, crystallising a loss of $1,260 (£834).


natweststockbrokers.com/cfdtrading 0845 350 0100


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