Daily Funded Bets
Our Daily cash bets have been replaced by Daily Funded Bets (DFBs).
DFBs offer our tightest available spreads without the inconvenience of rollovers, and replaced our Daily cash bets on stock indices, sectors, forex and shares, as well as our gold and silver markets.
What are Daily Funded Bets?
DFBs are a long-term bet on the cash price of an underlying instrument.
Each day your bet remains open, we make a cash adjustment to your account to reflect the funding costs of your bet. We will also make dividend adjustments when applicable.
This process differs from the Daily rolling bets which expired on a daily basis and had funding charges built into the roll spread.
With a DFB, it is easier to see the true profit and loss for each position you hold by avoiding multiple rollovers over a period of time.
DFBs have a long expiry date of April 2016, so like Daily cash bets you can close your bet whenever you choose before the expiry date.
View our DFB examples for further details.
Overnight funding and dividend adjustments
The funding adjustment will apply to all positions held at 10pm (London time). The way the charge is applied differs between forex and the other affected markets:
For stock index, sector and shares the funding adjustment is based on the LIBOR (London Interbank Offered Rate) for the currency the bet is denominated in, plus or minus 2.5%.
For forex DFBs, the funding adjustment is based on the tom-next spread for the currency pair involved including an admin fee of 0.0055% per day. For gold and silver DFBs, the funding adjustment is based on the relevant tom-next spread including an admin fee of 0.0055% per day.
Funding adjustments appear on the ledger as an aggregate amount for each currency that you hold positions in. Dividend adjustments on stock index DFBs will be made at the close of the underlying cash market. Dividend adjustments on share DFBs will be made at the open of the underlying cash market.
View our detailed examples to see how this works in practice.