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.
* Keep in mind that the Financing Fee in cryptocurrencies for long positions is charged based on the full value of your investment, including your invested amount.
If you have any further questions in regards to this, please feel free to contact us via email at BUX Support.