The overnight rollover values for a particular CFD can be seen in the Instruments window on most trading platforms.

Overnight rollover is the Interest charged or received on open positions per lot, for holding a position open beyond 22.00 GMT (usually). So it is possible to “profit” or “loss” from an overnight rollover depending on the interest rate differences. Generally these are very small sums but can add up if positions are

  1. Held for long periods of time
  2. Volumes of the trades are High

Overnight rollovers are Effective on all CFDs open positions at 22:00 GMT (check your Broker).learn-forex-472x200

Cumulative for as long as position is open. OR is a part of net P/L.

Rollover values will differ depending on whether the position held is short or long. All rollover values are per single lot and the final rollover charge or credit will be for the total amount of lots held in a position.

Example of the Crude Oil CFD Overnight Rollover Calculation:

Crude Oil Base Value is $77.40.
U.S. Federal Reserve Interest rate: 0.25%
Broker/MM Financing Charge: 1.5%

The CFD Overnight Rollover Formula:
(Interest Rate Difference – Financing Charge)/36000 x Base Value x Units per Lot x Exchange Rate.

A long position of 1 Lot (10 barrels) in the Crude Oil CFD will be charged -$0.04 overnight, based on the following calculation:

– 0.25% – 1.5% = -1.75%
-1.75%/36000 x $77.40 x 10 = -$0.04

A short position of 1 Lot (10 barrels) in the Crude Oil CFD will be charged -$0.03 overnight, based on the following calculation:

0.25% – 1.5% = -1.25%
-1.25%/36000 x $77.40 * 10 = -$0.03

Therefore a short position of 10 lots in Crude Oil would be charged -$0.30 overnight:
10 x – $0.03 = – $0.30.

Example of the FTSE 100 CFD Overnight Rollover Calculation:education-overview

FTSE 100 Base Value is £4970.
Bank of England Interest rate: 0.50%
Broker/Market Maker Financing Charge: 1.5%
GBPUSD Exchange Rate: 1.6320

The CFD Overnight Rollover Formula:
(Interest Rate Differential – Financing Charge)/36000 x Base Value x Units per Lot x Relevant Exchange Rate.

A long position of 1 Lot (1 unit) in the FTSE 100 CFD will be charged -$0.45 overnight, based on the following calculation:

-0.50% – 1.5% = -2.0%
-2.0%/36000 x £4970 x 1 x 1.6320 = -$0.45

A short position of 1 Lot (1 unit) in the FTSE 100 CFD will be charged -$0.23 overnight, based on the following calculation:

0.50% – 1.5% = -1.0%
-1.0%/36000 x £4970 x 1 x 1.6320 = -$0.23

A short position of 20 lots in the FTSE 100 would be charged -$4.60 overnight: 20 x -$0.23 = – $4.60.