The amount you have to pay for the Financing Fee is the interest rate over the additional amount that we have to reserve when you use a Multiplier. You will pay this amount on a daily basis at 23:00 GMT, only for the open positions where you have used a Multiplier.
To explain this in a little more detail, we would like to give you an example:
- Say, you invest £100 in stocks with a Multiplier of 5, and you think the stock price will go up. This means that your total Trade Size is £500.
- Because you put in £100 yourself, we have to reserve an additional £400 so that you can use the Multiplier.
- We only charge you for this additional amount when you keep this position overnight. In this case you will be charged an interest rate for the £400.
- This interest rate differs per country and is dependent on the type of investment (for European products, EONIA and for US products, LIBOR)
- Additionally, we calculate an annual rate of 2,5%
If you would like to have more information about how it works, please visit our website. On demand, we are happy to send across a more detailed pricing document.
If you have any further questions in regards to this, please feel free to contact us via email at BUX Support.