How does Financing work?
Clients pay interest on the contract value of a long CFD. Interest is charged at a percentage over LIBOR (LIBOR is the London Interbank Offered Rate and is linked to base interest rates). Clients holding short CFD contracts receive interest on the cash that the sale of the underlying stock would have generated. This is similarly paid at an agreed rate under LIBID (London-Interbank-Bid-Rate). All financing is calculated daily and is either debited or credited to the account depending on whether you are long or short.
