Demoni1 6 Posted October 24, 2018 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. Quote Share this post Link to post
0 Caseynotes 1,393 Posted October 24, 2018 Hi @Demoni1, you are correct, £400+ every night in overnight funding would seem excessive. Best bet is to let Google take the strain ? (see pic). 1 Quote Share this post Link to post
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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