LMAX MT4 Conditions – UltraFX FOREX trading on regulated venue
If you hold a position open overnight, you will be charged with a financing charge. The cumulative financing charge will be applied on the open positions on your MT4 Account each and every day that you have an open trade (including on weekends and on public holidays ter England).
The financing charge is calculated spil goes after:
F = Financing charge
V = notional value of your trade (quantity ? contract size ? promedio weekly price)
I = applicable Financing Rate
b = day poot for currency (quoted spil the very first currency te the pair -365 for GBP, HKD, AUD and NZD, 360 for all other currencies)
The Financing Rates that are applied are outlined ter the table below. The Financing Rates are, however, subject to switch and switches te the Financing Rates will be notified to you.
There may be instances when a financing charge is charged on brief positions, rather than paid to you. This may occur if a reference rate used to calculate the financing charge is at an exceptionally low rate.
Spil explained above, the notional value of your trade for the purposes of calculating the financing charge is calculated using the media weekly closing price. The closing price will be calculated on a weekly poot from the promedio trusted bid and ask prices on the MTF.
Example of Financing on a CFD
You are long 1 MT4 contract te UK100 CFD overnight where the closing price of the muziekinstrument is 5265.0 – 5267.0. The media weekly price is 5266.0. The LIBOR rate that day is 0.725%. Your financing charge would be:
Financing = Notional value of your trade ? financing rate / day voet for currency = 52660 ? (0.725% + 1.5%) / 365 = ?Trio.21
That means that you would be charged ?Trio.21 for holding 1 long MT4 contract overnight. If you were to hold a brief position te the same muziekinstrument overnight your financing would be calculated spil:
Financing = Notional value ? financing rate / day ondergrond for currency = 52660 ? (0.725% – 1.5%) / 365 = ?1.12
Even tho’ you are holding a brief position you will be charged ?1.12 overnight spil LIBOR is at a very low rate.
The financing charge for a Rolling Spot FX reflects the relative rente rates of the two currencies comprising your open trade plus a premium dependent on market conditions and including a LMAX charge. When a position is held overnight night, MT4 toneel will apply a financing charge on any open positions on your MT4 account. This will be reflected spil a cumulative charge on individual open trades, namely relative rente rates and LMAX Exchange premium.
Spot FX trades lodge on a T+Two poot, with the exception of USD/CAD, USD/Attempt, EUR/Paw and USD/Paw which lodge on a T+1 onderstel. If a Rolling Spot FX position is held through the market roll overheen (17:00 NY for all FX pairs except NZD pairs which roll at 07:00 Auckland), your account will be credited or debited with a financing charge. You will be credited or debited your 3-day (weekend) roll based on your open positions at the market close on Wednesday for all T+Two pairs and based on your open positions at the market close on Thursday for all T+1 pairs. The financing will accrue on your open trade and will be shown spil a cumulative amount from the time the trade wasgoed opened, and will be reflected ter your account pulvínulo currency. The financing will be taken off your oscilación at the time the trade is closed.
Interchange charges are quoted ter exchange points. The contemporáneo charges can be seen on your MT4 Client Terminal. A negative exchange charge will result ter your open trade paying the charge, and will result te a debit after the position is closed. A positive exchange charge will result te your open trade earning the charge, and will result ter a credit after the position is closed.
How to calculate financing charge
To calculate the overnight financing event, the following equation can be used:
F = Financing Credit/Debit
V = Notional value of your open position te the gevelbreedte currency (quantity ? contract size)
D = Number of days the position is spinned.
Example of financing on an FX contract
You are brief Ten MT4 lots of EUR/USD overnight. The position is flipped for 1 day.
The cost of holding the position overnight is:
V = Ten ? 100,000 = 1,000,000
Financing event: Credit = 1,000,000 ? 0.000003 ? 1 = $Three.00
This means that a charge of $Three.00 will be reflected on your open position on your MT4 account at market close.
No separate financing charge is applied on CFDs based off futures prices which have a immobile expiry date.
All open positions will incur a financing charge if held overnight. For hedged positons this means that both sides of the hedged positions will be charged financing.
LMAX Exchange MT4 muziekinstrument information schedule
Updated on 8 th May 2018
Latest muziekinstrument information* (see below the table)