EQUITY TRADING EXAMPLE
Stock ABC is priced at 500 pence a share. If you buy 1,000 CFDs, this would equate to an exposure of £5,000. Multiplying this by 0.08% equals £4 in commission. When you sell 1,000 shares to close the exposure, you would again be charged this commission rate of 0.08%.
Equities are also charged overnight financing on a daily basis. As part of the end of day process, any open positions will be eligible for financing charges. This is calculated in relation to the open exposure multiplied by 1 day of financing. The financing rate used is the 1-month GBP Libor, plus 2.5%.
Taking the example above, with £5,000 of exposure held open at the end of the trading day, and assuming Libor to be 0.75%, the financing calculation would be as follows:
Exposure of £5,000 x (3.25% * (1/365)) = 45 pence a night