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Trading with City Index

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Overnight financing explained

3-minute read

What is overnight financing?

Overnight financing is a fee that you pay to hold a trading position overnight on leveraged trades, it is essentially an interest payment to cover the cost of the leverage that you use overnight.

The daily financing fee will be applied to your account each day that you hold an open position (including weekend days).

We calculate the Overnight Financing Fee as follows:

F = V x I / b

  • F = Daily Financing Fee
  • V = Value of equivalent holding of the underlying instrument
  • I = Applicable Financing Rate

    Currency Financing Rate
    USD SOFR
    SGD SORA
    EUR ESTR
  • b = Day basis for currency (365 for GBP, AUD and SGD, 360 for all other currencies)

For further details on Overnight Financing Charges contact our Client Management team.

When does the charge apply?

The daily financing fee will be applied to your account each day that you hold an open position (including over the weekend).

You will not pay a finance charge on futures trades as they already have the cost of carry built into the spread.

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