How it works
The financing mechanism depends on the legal product. A cash currency conversion does not work the same way as a leveraged CFD or rolling spot-style contract.
What to check
Read the instrument and account specifications for the calculation basis, benchmark, mark-up and timing. For longer holding periods, estimate financing separately from the spread and commission.
- Identify the product type
- Find the financing formula
- Include holding period in cost estimates
Limits and risks
Ignoring overnight financing can make a low-spread product expensive for longer-term positions. Financing can also change over time as interest rates and provider pricing change.
Primary sources
BIS 2025 Triennial Central Bank Survey↗FCA: Contracts for difference (CFDs)↗General information only. Investment products can lose value, and terms, fees and regulation can change.