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CFDs Financing

CFDs are margin products and traded value is financed through overnight credit/debit charge.

CFD financing applies to Index Tracker CFDs, Single Stock CFDs and ETF/ETC CFDs. Borrowing costs apply to Short overnight Single Stock CFD and short ETF/ETC CFD positions.

Index Tracker CFDs financing costs

If Index Tracker CFD position is opened and closed within the same trading day, client is not charged with overnight financing.  Deadline for closing CFD postions in order to avoid overnight financing is 17:00 EST (New York) time. 

When Index Tracker CFD position is held overnight, it will consequently be subject to the following credit or debit: 

Holding Long Index Tracker CFD positions client is subject to debit which is calculated as relevant Inter-Bank Offered Rate (e.g. LIBOR) plus CFD financing mark-up:

  • Index Value * Number of CFDs * (relevant Inter-Bank Offered Rate + 3.50%) * (Actual Number of Days/360 or Actual Number of Days/365)

Holding Short positions client receives a credit which is calculated as relevant Inter-Bank BID Rate (e.g. LIBID) plus CFD financing mark-down. Please note that the financing credit may be negative, which will make the financing credit become a financing charge:

  • Index Value * Number of CFDs * (relevant Inter-Bank Bid Rate – 3.00%) * (Actual Number of Days/360 or Actual Number of Days/365)

The credit/debit is calculated on the total nominal value at the time the CFD contract is established (whether long or short).

CFD overnight financing mark-ups and mark-downs is available on DNB Trade platforms:

  • DNB Trade > Account > Trading Conditions > CFD Financing Conditions
  • DNB TraderGO > Account > Trading Conditions

Stock Index Name

Symbol CFD manufacturer's(1) financing mark-up/ mark-down DNB financing mark-up/ mark-down Total financing mark-up/ mark-down
North America
US Tech 100 NAS
USNAS100.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
US 30 Wall Street
US30.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
US 500
US500.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Europe
Belgium 20 BELG20.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Denmark 20 DEN20.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
EU Stocks 50 EU50.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
France 40 FRA40.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Germany 30 GER30.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Germany Mid-Cap 50 GER50MID.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Germany Tech 30 GERTECH30.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Italy 40 ITALY40.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Netherlands 25 NETH25.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Norway 25 NOR25.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Portugal 20 PORT20.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Spain 35 SPAIN35.I 3,0%/-2,5% 0,5%​/-0,5% 3,5%/-3,0%
Sweden 30 SWE30.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Switzerland 20 SWISS20.I
3,0%/-2,5%​
0,5%​/-0,5%
3,5%/-3,0%
UK 100 UK100.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
UK Mid 250 UK250MID.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Asia/ Pacific
Australia 200 AUS200.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Hong Kong HK50.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Japan 225 JP225.I
3,0%/-2,5%
0,5%​/-0,5%
3,5%/-3,0%
Africa
South Africa 40 ZA40.I 3,5%/-2,5% 0,5%/-0,5% 3,5%/-3,0%

(1) Index Tracker CFDs manufacturer is Saxo Bank A/S.

Single stock CFDs and ETF/ETC CFDs financing costs

If Single stock CFD or ETF/ETC CFD position is opened and closed within the same trading day, client is not charged with overnight financing.  

When client holds a Single Stock CFD position (or an ETF/ETC/Index CFD position) overnight (client holds position after 17:00 New York time), until closed CFD position will consequently be subject to the following credit or debit:

Long CFD position is debited (client pays) on the basis of the relevant monthly Inter-Bank Offer Rate for the currency in which the underlying share is traded (e.g. LIBOR) plus a CFD financing mark-up (times Actual Days/360 or Actual Days/365).

  • CFD price * Number of CFDs * (relevant Inter-Bank Offered Rate + CFD financing mark-up) * (Actual Number of Days/360 or Actual Number of Days/365)

Short CFD position is credited (client receives) on the basis of the relevant monthly Inter-Bank Bid Rate for the currency in which the underlying share is traded (e.g. LIBID) minus a CFD financing mark-down (times Actual Days/360 or Actual Days/365). Important notice - should the relevant Inter-Bank Bid Rate minus the CFD financing mark-down result in a debit as opposed to a credit, then client will pay the finance charge.

  • CFD price * Number of CFDs * (relevant Inter-Bank Bid Rate – CFD Financing mark-down) * (Actual Number of Days/360 or Actual Number of Days/365)​

CFD financing Mark-ups and mark-downs can be found at CFD trading prices and in DNB Trade platform: Account > Trading Conditions > CFD Financing Conditions

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).

Full list of CFD overnight financing mark-ups and mark-downs is available on DNB Trade platforms:

  • DNB Trade platform > Account > Trading Conditions > CFD Financing Conditions
  • DNB TraderGO > Account > Trading Conditions
​Exchange name
CFD manufacturer's(1) financing mark-up/ mark-down
DNB financing mark-up/ mark-down
Total financing mark-up/ mark-down
North America

NYSE MKT (AMEX – American Stock Exchange)​

1.5%/-1.5%

1%/-1%

2.5%/-2.5%

NASDAQ​

1.5%/-1.5%

1%/-1%

2.5%/-2.5%

NASDAQ (NSC – Small cap)​

1.5%/-1.5%

1%/-1%

2.5%/-2.5%

New York Stock Exchange​ (NYSE)

1.5%/-1.5%

1%/-1%

2.5%/-2.5%

New York Stock Exchange ARCA (NYSE ARCA)

1.5%/-1.5%

1%/-1%

2.5%/-2.5%

OTC Bulletin Board on NASDAQ (OTCBB) 1.5%/-1.5% 1%/-1% 2,5%/ -2,5%
Europe
NYSE Euronext Amsterdam (AMS)​
1%/-1%
1%/-1%
2%/-2%
NYSE Euronext Brussels (BRU)​
1%/-1%
1%/-1%
2%/-2%
NYSE Euronext Lisbon (LISB)​
1%/-1%
1%/-1%
2%/-2%
NYSE Euronext Paris (PAR)​
1%/-1%
1%/-1%
2%/-2%
Deutsche Börse (XETRA)
1%/-1%
1%/-1%
2%/-2%
London Stock Exchange (LSE_SETS)​
1%/-1%
1%/-1%
2%/-2%
London Stock Exchange (LSE_INTL – IOB)​
1%/-1%
1%/-1%
2%/-2%
Borsa Italiana/Milan Stock Exchange (MIL)​
1%/-1%
1%/-1%​
2%/-2%
NASDAQ OMX Copenhagen (CSE)
1%/-1%
1%/-1%
2%/-2%
NASDAQ OMX Helsinki (HSE)​
1%/-1%
1%/-1%​
2%/-2%
NASDAQ OMX Stockholm (SSE)
1%/-1%
1%/-1%
2%/-2%
Oslo Børs/Oslo Stock Exchange (OSE)​
1%/-1%
1%/-1%
2%/-2%
BME Spanish Exchanges (SIBE)​
1%/-1%
1%/-1%
2%/-2%
SIX Swiss Exchange (SWX + VX)​
1%/-1%
1%/-1%
2%/-2%
Wiener Börse/Vienna Stock Exchange (VIE)​
1%/-1%
1%/-1%
2%/-2%
Warsaw Stock Exchange (WSE)​
1%/-1%
1%/-1%
2%/-2%
Asia
Hong Kong Exchanges (HKEX)​
1%/-1.5%
1%/-1%
2%/-2.5%​

(1) SIngle Stocks CFDs and ETF/ETC CFDs manufacturer is Saxo Bank A/S.

Borrowing costs on Short overnight Single Stock CFD and ETF/ETC CFD positions

A borrowing cost may be applied to short Single Stock CFD and ETF/ETC CFD positions held overnight. This borrowing cost is dependent on the liquidity of the underlying instrument and may be zero (0) for high liquidity instruments.

If short CFD position is opened and closed within the same trading day, borrowing costs are not applied.

The specific borrowing rate can be seen as the 'Borrowing Rate' in DNB Trade platforms:

  • DNB Trade platform > Account > Trading Conditions > CFD Stock/Index Instrument List, column "Borrowing Rate"
  • DNB TraderGO > Account > Trading Conditions

Borrowing cost for holding the position overnight is also shown in the CFD Trade module in the 'Estimated borrowing cost per day' field.

The borrowing rate will be fixed when the position is opened and will be charged on a monthly basis.

Please be aware, that for certain corporate action events, the borrowing rate on the short position may be reset to the current rate in the market, upon the execution of the corporate action.

 

No Financing costs for Forex CFDs and Commodities CFDs

When trading CFDs on Forex and CFDs on Commodities there is no financing costs for holding open positions overnight.

Where can I find information regarding single stock CFD borrowing costs?

Borrowing cost may apply to short Single Stock CFD or ETF/ETC CFD positions held overnight, and is separate from the standard CFD financing costs involved in CFD trading. The borrowing cost is dependent on how much interest there is in the market in shorting a particular stock (demand): when you short a CFD, underlying stock is typically borrowed in the market. If many market participants are borrowing the same stock a borrowing cost can become applicable, as the availability of the stock for borrowing (the supply) decreases.

The borrowing rate is fixed when the position is opened and will be charged on a monthly basis.

The relevant borrowing rate can be viewed in DNB Trade platforms:

  • DNB Trade platform > Account > Trading Conditions > CFD Stock/Index Instrument List, column "Borrowing Rate"
  • DNB TraderGO > Account > Trading Conditions

In this example it can be seen that there is an estimated additional borrowing cost of 9% (annualized rate) for shorting CHA:xnys:

China Telecom Corp. Trading Conditions

When you trade a CFD, you can see the both the standard CFD financing costs involved on single stock CFDs, as well as the estimated borrowing cost to be applied if applicable:

China Telecom Corp. Trade Ticket

In this example, shorting 1000 CHA:xnys CFDs will result in a position of 46,990.00 USD - assuming the same price at the end of the day, and that interest rates remain unvaried, the client would pay 3.98 USD in standard financing costs, and 11.75 USD in borrowing costs.

Calculation of daily borrowing cost: (46,990.00 *0,09)/360 = 11.75 USD per day.

Carrying Cost from 1 August 2017

From 1 July 2017, overnight positions in Expiring CFDs will be subject to a carrying cost. The carrying cost will be calculated on the basis of the daily margin requirement and applied when a position is held overnight. The funding rate used for calculating the carrying cost is based on the relevant Interbank-rate BID + markup 1.5%.

Carrying Cost = Margin requirement * Holding time * (Relevant Interbank rate BID + Markup) / (365 or 360 days)

Risk warning

CFD is a margin product. Margin trading allows investors to buy and sell assets that have a greater value than the capital in their account. Margin Trading carries a high level of risk to your capital with a possibility to lose more than your initial investment.
Please read complete information on financial products and risk associated on this page.