By DominicWalsh · Posted
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
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I understand it is: (trade size * market closing price) * (2.5% + Libor/365)
For example, the Dow Jones with a $2 CFD and assuming the LIBOR rate is 0.7% :
(2 * 25100) * (2.5%+0.7%/365)
Am I correct in saying that 2.5% + 0.7% is written in this equation as 0.032 to represent 3.2% like so:
(2 * 25100) * (0.032/365)
Or is it meant to be:
(2 * 25100) * (3.2/365)?
It's the difference between $4.47 and $447 - I just want to double check I got this right, even if >$400 seems obscenely high.
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