IBKR Forex CFDs
Margin Rates & Financing
IBKR Forex CFDs
The carry interest for IBKR Forex CFDs is based on a currency-pair specific benchmark and a spread. The benchmark is the difference between the IBKR benchmark rates for the two currencies. It is calculated as + BM Base currency - BM Quote currency. For example, April 21, 2016 the GBP benchmark rate was 0.483%, the USD rate was 0.37%. The applicable benchmark rate is:
| Currency Pair | BM Base Currency | BM Quote Currency | Pair BM (Base BM - Quote BM) | |
|---|---|---|---|---|
| GBP.USD | 0.483% | 0.370% | = | 0.113% |
The applicable customer rate is Pair BM - IBKR spread for long positions, Pair BM + spread for short positions. It is important to note that the long rate is applied as a credit, the short rate as a debit. Consequently for a long position a positive rate means a credit, a negative rate a charge. However for short positions a positive rate means a charge, a negative rate a credit. For example:
| Currency Pair | Position | Pair BM | IBKR Spread | Applicable Customer Rate | |
|---|---|---|---|---|---|
| GBP.USD | Long | 0.113% | -1.00% | = | -0.887% |
| GBP.USD | Short | 0.113% | 1.00% | = | 1.113% |
Interest is calculated on the contract value expressed in the quote currency, and credited or debited in that currency. For example:
| Currency Pair | Position | GBP.USD Close | USD Value | Daily Interest Rate | USD |
|---|---|---|---|---|---|
| GBP.USD | -20,000 | 1.43232 | -28,646.40 | 1.113% | -0.89 |
IBKR Forex CFDs*
| Balance Cutoffs (in Quote Currency) | Contract Interest Charged/Paid on Open CFD Positions | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Currency Pair | Position | Tier I | Tier II | Pair BM | Forex CFDs Below Tier I |
Forex CFDs Between Tier I & II |
Forex CFDs Above Tier II |
||
Note: * Interest on Forex CFD balances is calculated on a stand-alone contract basis, and not combined or netted with other currency exposures, including Spot FX. Although IBKR does not directly reference swap rates, IBKR reserves the right to apply higher spreads in exceptional market conditions, such as during spikes in swap rates that can occur around fiscal year-ends.
- For Forex CFDs a positive rate will be paid to your account if your position is long, and charged to your account if your position is short. The reverse applies to negative Forex CFD rates.
