At the end of each trading day (5pm New York time), positions held in your account may be subject to a charge called a 'holding cost'. The holding cost can be positive or negative depending on the direction of your position and the applicable holding rate.
Historical holding rates, expressed as an annual percentage rate, are visible on our platform within the overview section for each product.
On a buy position (long):
Holding costs = (stake x point multiplier x opening bet price x holding rate buy) / 365
A point multiplier is the change in price that results in a profit or loss change equal to your stake size. This is shown as the last large digit in the price shown on the platform.
On a sell position (short):
Holding costs = (stake x -1 x point multiplier x opening bet price x holding rate sell) / 365
The resulting sum of all holding costs will be credited to or debited from your account as applicable, and will be visible within your account history on the platform.
Holding rates for spread bets on shares are based on the underlying interbank rate for the currency of the relevant share (see table below) plus 2.5% on buy positions and minus 2.5% on sell positions.
Holding costs are charged for buy positions and credited for sell positions, unless the underlying interbank rate is equal to or less than 2.5%, in which case sell positions may incur a holding cost charge and will be deducted from the cash in your account.
Holding rates for indices are based on the underlying interbank rate of the index (see table below) plus 2.5% on buy positions and minus 2.5% on sell positions.
Holding costs are charged for buy positions and credited for sell positions, unless the underlying interbank rate is equal to or less than 2.5%, in which case sell positions may incur a holding cost charge.
|AUD||Banker acceptance Bill 1 month|
|CAD||Bankers acceptance Bill 1 month|
|CHF||Libor 1 month|
|DKK||Copenhagen interbank offered rate 1 month|
|EUR||Euribor 1 month|
|GBP||Libor 1 month|
|HKD||Hong Kong interbank offered rate 1 month|
|IDR||1 month deposit|
|JPY||Libor 1 month|
|NOK||Norwegian interbank offered rate 1 month|
|NZD||Bank bill 1 month|
|SEK||Stockholm interbank offered rate 1 month|
|SGD||Singapore interbank offered rate 1 month|
|USD||Libor 1 month|
Holding rates for FX are based on the tom-next (tomorrow to next day) rate in the underlying market for the currency pair and are expressed as an annual percentage.
Buy position holding rate = tom-next rate % - 1%
Sell position holding rate = tom-next rate % + 1%
Different rates are quoted for buy and sell positions and are actively traded between banks. Tom-next rates in the underlying market are based on the interest rate differential between the two currencies. As a general rule, if the interest rate of the first named currency is higher than the second named currency in the pair (subject to the 1% adjustment detailed above), and you hold a buy position, the holding cost will be credited to your account. Conversely, if you hold a sell position in this scenario, the holding cost will be debited from your account.
Holding rates for cash commodities and treasuries are based on the inferred holding costs built into the underlying futures contracts, from which the prices of our cash commodity and treasury products are derived. A cash price is a product without a fixed expiry or settlement date. The price of our cash commodity and treasury products strips out this inferred holding cost (as described above) to create our continuous 'cash' price. The inferred daily holding cost is then applied as our holding cost, which can be positive or negative.
A forward contract is a product with a fixed expiration or settlement date, on which open positions will be settled at the closing price. Index, FX, commodity and treasury forward contracts are not subject to holding costs.