MetaTrader 4 Rollover / Swap (CFDs)

There is funding applied to positions open every night. This is at 2% above or below the relevant LIBOR rate. If you are long the indices, you are charged. If you are short the indices, you are credited (LIBOR minus 2%).

Example #1 Indices (SP)

Long
The US - S&P 500 Index is priced at 1275.40 / 1276.40. The LIBOR rate is 2.5%. If you are long 10 lots of SP and rollover to the next trading day, the amount to be charged = 10 (contracts) x $1276.40 x 4.5% (LIBOR+2%) / 360 = $1.59 per night.

Short
The US - S&P 500 Index is priced at 1275.40 / 1276.40. The LIBOR rate is 2.5%. If you are short 10 lots of SP and rollover to the next trading day, the amount to be credited = 10 (contracts) x $1275.40 x 0.5% (LIBOR-2%) / 360 = $0.17 per night.

Example #2 Stocks (MSFTUS)

Long
The Microsoft Corp share is trading at 25.75 / 25.82. The LIBOR rate is 2.5%. If you are long 100 lot of MSFTUS and rollover to the next trading day, the amount to be charged = 100 (contracts) x $25.82 x 4.5% (LIBOR + 2%) / 360 = $0.32 per night.

Short
The Microsoft Corp share is trading at 25.75 / 25.82. The LIBOR rate is 2.5%. If you are short 100 lot of MSFTUS and rollover to the next trading day, the amount to be credited = 100 (contracts) x $25.75 x 0.5% (LIBOR - 2%) / 360 = $0.03 per night.

Daily Rollover Formula

Long
Amount to be charged = # of contract(s) x price x (LIBOR + 2%) / # of days.

Short
Amount to be credited = # of contract(s) x price x (LIBOR - 2%) / # of days.