What is Finance?
City Private Clients, execution only stockbrokers and independent financial advisors is your sure net-stop whether you are a first time investor or an experienced stock market veteran, our friendly and qualified staff will assist you with all your dealing needs

How to calculate the financing rate:
Long Position
You wish to buy ten thousand shares of CFD's at 121p in a UK company and decide to hold the position overnight.
10000 x 121p = £12,100.00 is your total market exposure
You are then charged interest at official overnight cash rate + 1.5%
This is then multiplied by your total market exposure, and then divided by the 365 days in the year to give your daily overnight rate.
 
4.25%* + 1.5% = 5.75%
£12,100 x 5.75% = £695.75
£695.75/365 = £1.90.6 per night
SONIA overnight rate. Base rates can change on a daily basis.
Short Position
You wish to buy ten thousand UK shares at 121p and decide to hold the position overnight.
10000 x 121p = £12,100.00
You are then credited by the amount of the overnight official cash rate less 2.5%.
This is then multiplied by your total market exposure, and then divided by the 365 days in the year to give your daily overnight rate.
 
4.25%* - 1.5% = 1.75%
£12,100 x 1.75% = £211.75
£211.75/365 = £0.58 per night
Partake in Corporate Actions
Just as CFD's mirror the price and movement of the physical share market, they also mirror any Corporate Actions that take place in the underlying share or index. This means that the owner of a share CFD will receive dividends, and participate in stock splits, just as they would if they owned the physical share. The only difference is that with a CFD you are not entitled to any voting rights.