Help- Interest calculation on CFD

[new_trader]

Can anyone please explain why there is a big difference between the interest I calculate and the interest I am being charged on a Mini FTSE100 CFD with IG Markets?

The given formula is:

D = n x L x C x i / 365

Where:

D = daily interest adjustment
n = number of lots
L = lot size
C = current index price
i = applicable annual interest rate (LIBOR)

They calculate LONG INT WEEK ENDING 06 AUG 06 = £-16.41

I calculate less than that.

I have 1 contract on a mini FTSE 100 (£2 contract)

I got the historical FTSE 100 from 1-6 Aug 2006, but the result just doesn't seem to tally. What am I (or they) doing wrong?

Thanks

 

[ns1000]

Can anyone please explain why there is a big difference between the interest I calculate and the interest I am being charged on a Mini FTSE100 CFD with IG Markets?

The given formula is:

D = n x L x C x i / 365

Where:

D = daily interest adjustment
n = number of lots
L = lot size
C = current index price
i = applicable annual interest rate (LIBOR)

They calculate LONG INT WEEK ENDING 06 AUG 06 = £-16.41

I calculate less than that.

I have 1 contract on a mini FTSE 100 (£2 contract)

I got the historical FTSE 100 from 1-6 Aug 2006, but the result just doesn't seem to tally. What am I (or they) doing wrong?

Thanks

I think they're about right. If you're using LIBOR, that's your problem - they would generally charge you a couple of % higher than that.

 

[new_trader]

I think they're about right. If you're using LIBOR, that's your problem - they would generally charge you a couple of % higher than that.

Thanks, you are right. I have found out that IG markets adds 2.5% on top of LIBOR.