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. The financing charge or credit also takes into account the impact of our admin fee.

Daily financing charge or credit = size of position x applicable funding rate/365

Daily financing charge or credit = value of position* x applicable funding rate/365

*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.

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 for CFD positions.

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), and when the trade is closed.

Irrespective of the sub-account type, financing rates are calculated the same way. he way they are applied to sub-account types, however, does differ.

How the financing costs are applied to your account?

v20 accounts & v20 MT4 sub-accounts

Financing costs are credited/debited to accounts daily, i.e. the charges result in realised profit or loss.

This cash posting to the sub-account most usually happens on a daily basis as of the End of Day (EOD Time).

However, the cash posting may occur earlier for closed Positions on an underlying Instrument that is a commodity or bond, where the financing calculation is performed on a continuous, rather than daily basis.

OANDA One sub-account

Financing costs are generally booked as Swaps on each Deal for which they accrue, i.e. the charges result in ongoing unrealised profit or loss. (The cumulative Swaps accrued whilst a Position is open forms part of the realised profit or loss on the Position and is thereby credited/debited to the account when the Position is closed.

This accumulating update to the Deals happens on a daily basis as of the EOD Time.

However, for Positions on an underlying Instrument that is a commodity, Ffinancing costs are credited/debited to the account, i.e. the charges result in realised profit or loss.

Those postings to the account on the basis of the earlier of EOD time or the time at which a Position was closed intra-day.