Daily finance costs are applied to the account at the end of the trading day and
can be calculated using the following equation;
Notional Size of Position x Finance Rate x Number of days position is held ÷
i.e. £10,000 x 2.5% x 3 ÷ 365 days = £2.05
How are FX Finance Costs calculated?
At ETX Capital all spot FX bets are automatically rolled every evening at 20:00
Rolling over a spot FX bet involves the closing of the current days bet and the
re-opening of a new position for the next days trading. The overnight charge (known
as TomNext) plus an ETX Capital admin charge is applied to the account the following
business day and appears as a cash ledger credit or debit.
Rolling Spot Worked Example
Client buys ( goes ‘long’ ) GBP/USD £1 per point at a price of
1.5000. Assume UK Base rates are currently 2% with US rates at 1%. Hypothetically
position should earn 1% (+ 2% on the GBP holding minus 1% on the USD). GBPUSD TomNext
= Short -0.7 ; Long -0.6 Client closes GBPUSD position at 1.5000 Having bought (gone
‘Long’) GBPUSD the charge would be calculated thus; Long GBPUSD TomNext
+ ETX Capital Admin Charge
-0.6 + 0.45 = -0.15
In this example the client would receive 0.15 pips (ignoring the minus sign) which
when multiplied by the stake shows the client would receive a credit of £0.15
for a single night roll. Over a weekend clients are charged/credited for each day
they hold the position (3 days) but will only incur one ETX Capital admin charge.