Financing costs

If you have an open position on your account at the end of each trading day (5pm ET), the position is considered to be held overnight and subject to either a financing charge or credit to reflect the cost of funding your position (in relation to the margin utilised).

The financing cost is calculated on a per position basis and may be a charge or a credit to your account, depending on whether you hold a buy/long position or a sell/short position, and after also taking into account the impact of our admin fee.

*where value of position = size of position x price at the end of trading day (5pm ET)

Funding rates (or ‘swap rates’ for FX products) vary depending on the instrument and may change on a daily basis. These are quoted as an annual rate. Each instrument has two quoted rates: one for a buy/long position and the other for a sell/short position.

A negative funding rate will result in a charge being debited from your account, and a positive funding rate results in a credit to your account.

The daily financing charge or credit will be claimed/passed from/to your account each day, and will be visible in your transaction history accessible via your account portal.

The below table shows how we calculate funding rates for our FX, metals and indices CFDs.

Different asset classes settle on different days.

FX, gold, and silver trades typically settle on a T+2 basis, which effectively means that weekend financing is usually applied two days earlier on Wednesdays (tripling the usual daily rate), although this timeline is similarly impacted by public holidays.

Indices typically factor in weekend financing on a Friday (tripling the usual daily rate), although this timeline is also similarly impacted by public holidays.

Accordingly, the actual funding rate on any given day may reflect more than one day’s costs.

No financing charges or credits are applied to clients’ accounts over the weekend.

See our FAQs for examples of financing costs.

The prices of our commodity, metal (excluding gold and silver) and bond CFDs are based on underlying futures contracts. When an underlying futures contract is near expiry, we calculate the basis rate, which represents the difference in price between the expiring futures contract and the next futures contract. From that point forward, our CFD price is calculated as the present value of the price of the next futures contract, using the basis rate for the present value calculation. The present value is calculated continuously, second-by-second.

When the basis rate is positive, the CFD price will tend to move upwards towards the contract price. When the basis rate is negative, the CFD price will tend to move downwards towards the contract price.

Financing costs on commodity, metal (excluding gold and silver) and bond CFDs are therefore calculated on a continuous second-by-second basis.

For the duration of the trade the resultant financing charge/credit is debited/credited at the end of each day (5pm ET), including weekends and public holidays, and when the trade is closed.

Financing charges or credits are calculated as follows:

Financing charge or credit = size of position x applicable funding rate x [trade duration (in days) / 360] x conversion rate to account currency

OANDA charges financing on commodity, metal (excluding gold and silver) and bond CFDs using the basis rate with a % admin fee applied. The basis rate portion of the financing amount is intended to offset the price movements caused by the present value calculation.

For long positions, your account will be debited the basis rate plus a 2.5% admin fee. For short positions, your account will be credited the basis rate minus a 2.5% admin fee (which could result in a charge where the basis rate is less than the admin fee).

See our FAQs for examples of financing costs for CFDs on commodities (plus copper) and bonds.