In brief
Many cash CFDs apply financing when a position remains open past the daily cut-off. The position value and the instrument terms matter. Depositing a small margin does not automatically make the overnight charge small.
- Count financing days, including covered weekend days.
- Distinguish position value from deposited margin.
- Long and Short rates may differ.
- Separate spread, financing and contract rollover.
Why can an open position cost money?
With a CFD, you post margin rather than paying the full purchase price of a share or index basket. The contract gives you a larger economic market exposure. Many cash CFD providers apply a daily financing adjustment to that exposure, often including a reference interest rate and provider charge. For currencies, the rates of both currencies and short-term settlement also matter.
A futures CFD or options CFD may have a different cost structure. The calculator below assumes one constant cash-CFD-like exposure; it is not a universal broker fee formula.
What could one day, one week and one month cost?
Assumptions: €10,000 unchanged position value, hypothetical 7.3% total annual rate, a 365-day basis and a charge for each financing day. Price, rate and position do not change. Spread, commissions, borrowing fees and currency conversion are excluded.
| Period | Calculation | Cost |
|---|---|---|
| 1 financing day | €10,000 × 0.073 ÷ 365 | €2.00 |
| 1 week / 7 days | €10,000 × 0.073 × 7 ÷ 365 | €14.00 |
| Model month / 30 days | €10,000 × 0.073 × 30 ÷ 365 | €60.00 |
Change the assumptions and compare costs
Illustrative cost model. This is no current broker rate, recommendation or forecast.
Total market exposure, not just the margin deposited.
Formula: €10,000.00 × 7.3 % × financing days ÷ 365. Position value and rate stay constant in this model. Weekend days are already included in the 7- and 30-day totals; do not add a triple charge again. Amounts are rounded only at the end.
The amounts scale with value and days only while the assumed rate stays constant. In a real account, rates, prices and position sizes can move, and months have different lengths. Even changing the denominator from 365 to 360 changes the result. Round after calculating the full amount, not each intermediate term.
When does a charge appear, including weekends?
The product’s daily cut-off matters. “Overnight” need not mean a full 24 hours: a position opened shortly before the cut-off can receive an adjustment if still open then. Providers use different cut-off times. Check the time zone and daylight-saving treatment in the platform for the exact instrument.
Libertex also documents a triple posting from Wednesday to Thursday for FX pairs and Friday to Monday for other CFD instruments. It covers non-trading days. Our seven-day model already includes seven financing days, so a triple posting is not added on top. Holidays and settlement calendars can alter the pattern. For Libertex-specific context see our broker profile and then the current instrument specification.
Swap, overnight and rollover are not always the same fee
| Label | What to check |
|---|---|
| Overnight financing | Daily charge or credit after the cut-off on an open position. |
| Swap / rollover adjustment | Often an interest adjustment, particularly in FX; sign and unit matter. |
| Contract rollover | Move from an expiring futures contract to a later one; it is a different event. |
| Spread / commission | Trading or order costs, not charged merely because another night passes. |
| Borrowing fee | Possible separate cost for some Short share CFDs. |
A Short position is not a guaranteed interest earner. Provider adjustments and borrowing charges can outweigh a positive reference rate. Rates may appear as percentages, points or money per lot. Some commodity cash-CFD adjustments also reflect futures-curve moves rather than a simple loan formula.
Five checks before holding a CFD longer
- Is the reference a cash price, a future or another contract?
- What position value, quantity or lots form the calculation basis?
- What are the Long and Short rates, units and provider adjustments?
- When is the cut-off, and which weekends or holidays are bundled?
- What remains after price movement, financing, spread and other charges?
A profitable market move can produce a smaller net gain after costs. A special case is discussed in our Libertex options CFD guide.
Glossary
- Margin
- Collateral deposited against a position; it need not equal the full position value.
- Swap
- An instrument-specific daily financing or interest adjustment.
- Rollover
- Depending on context, an interest adjustment or the move to a later futures contract.
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