Bond CFDs

Positions on shares and indices CFDs are subject to an overnight financing credit/debit charge. Please note that when traders open and close a position within the same trading day, they are not subject to overnight financing.

These overnight charges can be adjusted for corporate actions such as cash dividends pay outs, exchange offers, dividend options, bonus issues etc.

For example, if a share CFD traded by the client and held overnight pays out dividend on that date (goes ex-dividend date), then the client with a long position will be entitled to receive the dividend as an adjustment in the swap. In the case that the client holds a short position on the share CFD, this position will be charged the relevant dividend adjustment through the overnight swap. In this example the swap for long positions will be increased to reflect the dividend payment, and the swap for the short positions will be decreased respectively.

The above applies both for single shares CFDs and for all equity indices offered by HotForex. Equity indices are most likely to incur frequent dividend swap adjustments as the underlying of equity indices consist of many stocks.

Triple swaps are applied every Friday on all open positions held over the weekend for CFD on Indices.

Triple swaps are applied on all open positions held every Wednesday for CFDs on Shares.

All swap rates are updated on both the company’s website and the MT4 platform with a cut off time 14:30 GMT.