As Single Stock CFDs at Saxo Bank are a margined product, you finance the traded value through an overnight credit/debit charge.If you open and close a CFD position within the same trading day, you are not subject to overnight financing.
When you hold a Single Stock CFD position (or an ETF/ETC CFD postion) overnight (i.e. have an open CFD position at close of market on the Stock Exchange, your CFD position will consequently be subject to the following credit or debit:
When you hold a long CFD position, you are subject to a debit calculated on the basis of the relevant Inter-Bank Offer Rate for the currency in which the underlying share is traded (e.g. LIBOR) plus a mark-up (times Actual Days/360 or Actual Days/365).
When you hold a short CFD position, you receive a credit* calculated on the basis of the relevant Inter-Bank Bid Rate for the currency in which the underlying share is traded (e.g. LIBID) minus a mark-down (times Actual Days/360 or Actual Days/365).
The credit/debit is calculated on the total nominal value of the underlying Stock(s) at the time the CFD contract is established (whether long or short).
Please note the following:
a) A floor apply to the relevant Inter-Bank Bid/Offer Rate, i.e. if the Inter-Bank Rate is negative it will be excluded from the financing calculation.
b) If the calculated financing rate on a short position (Inter-Bank Bid Rate – mark-down) is negative, the financing credit will become a financing charge.