The first layer, institutions. Customers who choose leverage below 50: 1 can enjoy institutional overnight rate. Institutional overnight rate is based on the direct reflection of interbank interest rate difference and spot market.
Second floor, retail. Customers choose 100: 1 leverage to obtain overnight interest from retail investors. Overnight interest of retail investors includes the extra interest difference caused by high leverage.
Third floor, over 200: 1. Customers choose leverage of more than 200: 1, which belongs to high-risk margin investment. Customers borrow money from brokers for foreign exchange transactions.
The usual spread on Wednesday will be more than three times larger than usual, because the three-day extension of foreign exchange positions will add the weekend period.
Overnight interest starts at 5:00 pm EST. The overnight interest calculation takes several minutes to complete. So there is no guarantee that you can get/pay interest if you place an order before 5: 00 pm. Customers should not base their available profits entirely on the interest earned. FX Solutions is not responsible for the resulting liquidation.
Method for quickly inquiring overnight interest
The method of viewing overnight interest on MT4 platform is: right-click any commodity-view the commodity list-find the currency pair to view overnight interest-double-click to open-Properties-view the transaction details corresponding to the currency pair.
The method of viewing overnight interest on GTS platform is as follows: After logging in to the platform with an account, click the "Trading Tools" menu-click-"Foreign Exchange Calculator" or "CFD Calculator" to view all the corresponding information such as overnight interest, leverage, margin and marketing unit.
CFD interest calculation formula of stock index
The interest calculation formula is:
F=V*(I/B)
F: overnight interest
V. Opening Price * Contract Quantity
LIBOR +/-3%
B: Days (when the British pound and the Australian dollar are involved, the figure is 365 days, others are 360 days).
That is: overnight interest = (opening price * contract quantity) * (labor +/-3%)/365 or 360.
For example:
Example 1: If the customer buys 10 lot of gold, the price is $792.4/793.2, and LIBOR is 2.00%, the interest charged to the customer is as follows:
( 10*793.2)*(0.02+0.03)/360=$ 1. 10 16
Example 2: If the customer sells 5 lots of UK 100, the price is 6052.0/6054.0, and LIBOR is 3.38%, then the interest earned by the customer is:
(5 * 6052.0) * (0.0338-0.03)/365 = 0.3 150.