CFD Products and Margin Levels

FXCM charge for a rollover of an Index CFD using a calculation based on an interest rate on the total value of the outstanding position. If you roll over a short position with us we will pay interest on the total value of the outstanding position.

Our rollover rates are based on one week LIBOR for all index products. The actual rates charged are available upon request from the CFD dealing desk.

Therefore if you are long the US30 overnight then you will pay financing on 100% of that position; where one week LIBOR is 4.50% and we charge a haircut above and below of +3/-3%. Therefore in the US30 example, a holder of a long CFD position would pay 7.50%/ 360, whereas a holder of a short CFD position would receive 1.50%/360.

f = Overnight finance charge
s = Trade size (£10)
p = Closing price as determined by FXCM
r = Relevant overnight LIBOR rate, add 300 basis points for long positions, or deduct 300 basis points for short positions (6.00% - 3.00%) = 3%
d = Number of days, i.e. 365 for GBP products and 360 for all others

This adjustment is calculated as follows: f = (s x p x r) / d where:

(GBP has a 365 day count per annum all other products are 360 days , note that bond and Oil CFDs are to forwards dates therefore do not attract a daily finance charge)

The spread in brackets makes reference to the spread that FXCM will ordinary make when the underlying cash market is closed, although the futures market may continue to trade, it generally will be wider then whilst the cash market was open.

All CFD contracts will remain open until closed by the client.

Dividends

Applicable to Index CFD only, dividend payments will be applied as separate cost or benefit as applied to your open positions. Such adjustment shall apply on the eve of the ex-dividend date of the constituent members of the relevant Index CFD. The adjustment will appear as part of the roll over cost / benefit on your statement.

When a stock goes ex-dividend the price of that stock theoretically decreases by the dividend amount. (In practice this does not always happen as there are many market forces affecting an equity price. The amount of points an index CFDs drops by is dependent on the weighting of the stock within the index. If more than one constituent stock of an index CFD goes ex-dividend on the same day the amount of points each stock will theoretically cause the sector or index to drop by is added together to calculate the total amount of dividend points or drop points.

Drop points are applied to Index CFDs only. There are several different corporate actions that can impact the price and performance of the constituent members of the Index CFDs. Dividends, rights issues, bonus/scrip issues, mergers and take-overs, and share splits are just a few. For example, we may provide our clients with cash disbursements or may amend the size and price of an open position, whilst keeping the market value of the trade the same. All such adjustments to your account are made automatically and without notice to you.