Categories
Uncategorized

[:en]CMC Markets Fees[:]

[:en]CMC Markets Fees review, All you need to know about CMC Fees and charges, Read what are CMC trading fees and costs for financial Spread betting, CFD trading, Stockbroking and Forex trading. For more information about CMC Fees you can visit CMC Markets review by ForexSQ.com forex website.

CMC Markets Fees and Charges

CMC Markets CFD Fees

Historical holding rates, expressed as an annual percentage rate, are visible on our platform within the overview section for each product. Holding costs are calculated as follows:

On a buy position: (Units x opening trade price x holding rate buy) / 365 x CMC Markets currency conversion rate.

On a sell position: (Units x –1 x opening trade price x holding rate sell) / 365 x CMC Markets currency conversion rate.

The resulting sum of all holding costs will be credited to or debited from your account as applicable, and will be visible within your account history on the platform.

CMC Markets Shares Fees

Holding rates for share CFDs are based on the underlying interbank rate for the currency of the relevant share (see table below),  plus 2.5% on buy positions and minus 2.5% on sell positions.

Holding costs are charged for buy positions and credited for sell positions, unless the underlying interbank rate is equal to or less than 2.5%, in which case sell positions may incur a holding cost charge that will be deducted from the cash in your account. Holding rates for sell trades may also include an additional adjustment for borrowing fees on shares that attract a higher borrowing cost in the underlying market. These borrowing fees can be significant and are subject to large changes as short interest in a stock increases. Please be aware of this additional risk/charge when holding sell trades in individual shares.

Indices CMC Trading Fees

Holding rates for index CFDs are based on the underlying interbank rate of the index (see table below), plus 2.5% on buy positions and minus 2.5% on sell positions.

Holding costs are charged for buy positions and credited for sell positions, unless the underlying interbank rate is equal to or less than 2.5%, in which case sell positions may incur a holding cost charge.

CMC Markets Forex Fees

Holding rates for FX CFDs are based on the tom-next (tomorrow to next day) rate in the underlying market for the currency pair and are expressed as an annual percentage.

Buy position holding rate = tom-next rate % –​1%Sell position holding rate = tom-next rate % + 1%

Different rates are quoted for buy and sell positions and are actively traded between banks. Tom-next rates in the underlying market are based on the interest rate differential between the two currencies. As a general rule, if the interest rate of the first named currency is higher than the second named currency in the pair (subject to the 1% adjustment detailed above), and you hold a buy position, the holding cost will be credited to your account. Conversely, if you hold a sell position in this scenario, the holding cost will be debited from your account.

Commodities and treasuries CMC Fees

Holding rates for cash commodity and treasury CFDs are based on the inferred holding costs built into the underlying futures contracts, from which the prices of our cash commodity and treasury products are derived. A cash price is a product without a fixed expiry or settlement date. The price of our cash commodity and treasury products strips out this inferred holding cost (as described above) to create our continuous ‘cash’ price. The inferred daily holding cost is then applied as our holding cost, which can be positive or negative.

Our cash commodities and treasuries enable you to trade on a continuous price which, unlike forward commodities or treasuries, is not subject to an expiration date.

Using the underlying futures price data as a basis, our automated pricing engine calculates theoretical cash prices for each cash commodity and treasury by adding or subtracting (as applicable) the implied holding cost. Using these theoretical cash prices as a basis, our automated pricing engine derives price depth ladders containing up to ten levels of depth for each cash commodity and treasury. Each level transparently displays the volume obtainable at a distinct price, with the volume and applicable spread increasing as you go further down the ladder.

The implied holding cost, plus or minus a haircut, is then applied daily to positions held at 5pm (New York time) as a daily holding cost amount.

The price of our cash product is based on the nearest most liquid futures contract, or primary contract, so over time as the underlying futures approach expiry the primary contract will change, which generally coincides with the roll dates of our forward instruments.

Before each change in the primary contract the implied holding cost rate is calculated, and fixed, measuring the difference between the mid-price of the ‘next’ primary contract and the mid-price of our current cash price. Each time we update our primary contract, the holding cost rate is recalculated to reflect this change.

Simplified calculation used to generate the holding cost rate price for cash commodities and treasuries

  1. Subtract the mid-price of the current cash price from the mid-price of the next primary contract to get the price difference;
  2. Calculate the number of days to expiry between the next primary contract and now;
  3. Divide the price difference by the number of days to expiry and multiply by 365 to get the annualised difference in price terms;
  4. Divide the annualised price difference by the cash price to work out the percentage mid-rate, and;
  5. Bid or long position = (percentage mid-rate + (maximum of (absolute of the percentage mid-rate x the haircut) or 0.25%)) x –1 Ask or short position = (percentage mid-rate – (maximum of (absolute of the percentage mid-rate x the haircut) or 0.25%)) x –1

The haircut used to generate the price for cash commodities and treasuries is the mid-rate +/– 2.5%.

Example (illustrative purposes only)

The Crude Oil Brent primary contract moved from June to July on 28 April at approximately 9.30pm (UK time).

  1. Crude Oil Brent July Future mid-price 47.48 – Crude Oil Brent Cash mid-price 47.79 = –0.31
  2. Expiry of July contract 30 May-28 April = 33 days
  3. –0.31 / 33 x 365 = –3.42879
  4. –3.42879 / 47.79 = –7.175%
  5. Bid or long position = (–7.175% + 2.5%) x –1 = 4.6747% Ask or short position = (–7.175% – 2.5%) x –1 = 9.6747%

Forward contracts CMC Trading Fees

A forward contract is a product with a fixed expiration or settlement date, upon which open positions will be settled at the closing price. ​ Index, FX, commodity and treasury forward contracts are not subject to holding costs.

CMC Fees review conclusion

By this article about CMC Fees now you know all about CMC Markets Fees and charges, Read what is CMC fees and costs for financial Spread betting, CFD trading, Stockbroking and Forex trading. For more information about CMC Markets Fees you can visit CMC Markets review by TopForexBrokers.com forex brokers reviews and comparison website.

If you like this article about CMC Markets fees then tip us by share it please.[:]

Categories
Uncategorized

[:en]CMC Markets CFD Trading[:]

[:en]CMC Markets CFD trading review by fx trading experts, All you need to know about CMC CFD trading broker like CMC Markets CFD Fees or how to do CMC Markets CFD login. For more information about CMC CFD trading company you can visit the CMC Markets review by ForexSQ.com online CFD trading teachers.

CMC Markets CFD Trading Review

CMC Markets CFD Trading is available, Contracts for difference (CFDs) are derivative products which enable you to trade on the price movement of underlying financial assets (such as indices, shares and commodities).

A CFD is an agreement to exchange the difference in the value of an asset from the time the contract is opened until the time at which it’s closed. With a CFD you never actually own the asset or instrument you have chosen to trade, but you can still benefit if the market moves in your favour, or make a loss should the market move against you.

CFDs are a leveraged product, which means that you only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’. While trading on margin allows you to magnify your returns, losses will also be magnified as they are based on the full value of the position, meaning you could lose more than any capital deposited.

CMC Markets CFD Login

For login to CMC markets CFD trading account you can visit the broker site and after sign up with the broker you can check your email and do CMC Markets CFD login.

CMC Markets CFD Fees

CMC Markets CFD Fees is various, CFD share trades attract a commission charge for each trade. UK share trades cost 10 basis points (0.10%) with a £9 minimum commission charge per trade​​.

To determine how much commission you would pay, multiply your position size by the applicable commission rate.

In the ABC plc example above, the charge to open a buy position would be calculated as follows: 1000 (units) x 1600 pence (price) x 0.10% = £16.00

The charge to close the buy position would be calculated as follows: 1000 (units) x 1625 pence (price) x 0.10% = £16.25

CMC Markets CFD Charges

If you hold any position after 5pm New York time, you will be charged a holding cost. For positions that have a fixed expiry, the cost is built into the price of the product.​​​

We calculate the holding rate applicable to the holding cost based on the interbank rate of the currency in which the product is denominated. For example, the UK 100 (pound sterling) is based on the London Interbank Offered Rate (Libor). For buy positions, we charge 2.5% above LIBOR and for sell positions you receive Libor minus 2.5%, unless the underlying interbank rate is equal to or less than 2.5%, in which case sell positions may incur a holding cost.

CMC CFD Trading Review conclusion

By this article about CMC CFD trading now you know all about CMC Markets CFD trading broker like CMC CFD Fees or how to do CMC CFD login. For more information about CMC Markets CFD trading company you can visit the CMC Markets review by TopForexBrokers.com online CFD trading brokers review and comparison website.

If you like this article about CMC CFD trading then tip us by share it please.[:]