As Index Tracker CFDs at Galt & Taggart are margined products, you finance the traded value through an overnight credit/debit charge. If you open and close a CFD position within the same trading day, you are not subject to overnight financing. When you hold an Index Tracker CFD position overnight, your CFD position will consequently be subject to the following credit or debit:

• Holding Long CFD Stock Index Tracker positions after 17:00 EST (New York time) incurs a financing charge which is calculated as follows:
  • Index Value * Number of CFDs * (Relevant Alternative Offer Reference Rate + 3.50%) * (Actual Number of Days/360 or Actual Number of Days/365)

• Holding Short positions after 17:00 EST (New York time) creates a financing credit which is calculated as follows:
• Index Value * Number of CFDs * (Relevant Alternative Bid Reference Rate – 3.00%) * (Actual Number of Days/360 or Actual Number of Days/365)

Please note the following:

• A floor applies to the relevant Alternative Bid/Offer Reference Rate, i.e. if the Alternative Reference Rate is negative it will be excluded from the financing calculation.
• If the calculated financing rate (Benchmark +/- markup/down) is negative (on a short position), the financing credit will become a financing charge.

As Single Stock CFDs at Galt & Taggart are a margined product, you finance the traded value through an overnight credit/debit charge. If you open and close a CFD position within the same trading day, you are not subject to overnight financing. When you hold a Single Stock CFD position (or an ETF/ETC CFD position) overnight (i.e. have an open CFD position at close of market on the Stock Exchange), your CFD position will consequently be subject to the following credit or debit:

• When you hold a long CFD position, you are subject to a debit calculated on the basis of the relevant Alternative Offer Reference Rate for the currency in which the underlying share is traded (e.g. ARR) plus a mark-up of 3.60% (times Actual Days/360 or Actual Days/365).
• When you hold a short CFD position, you receive a credit calculated on the basis of the relevant Alternative Bid Reference Rate for the currency in which the underlying share is traded (e.g. ARR) minus a mark-down 3.00% (times Actual Days/360 or Actual Days/365).

The credit/debit is calculated on the total nominal value of the underlying Stock(s) at the time the CFD contract is established (whether long or short).

Please note the following:

1. A floor applies to the relevant Alternative Bid/Offer Reference Rate, i.e. if the Alternative Reference Rate is negative it will be excluded from the financing calculation.
2. If the calculated financing rate (Benchmark +/- markup/down) is negative (on a short position), the financing credit will become a financing charge.

A borrowing cost may be applied to short Single Stock CFD positions held overnight. This borrowing cost is dependent on the liquidity of the underlying Stocks and may be zero (0) for high liquidity Stocks. The specific borrowing rate for a Stock can be seen as the "Borrowing Rate" under Account >> Trading Conditions >> CFD Stock/Index Instrument Name in the trading platforms.

When selling a CFD, the borrowing cost for holding the position overnight is shown in the CFD Trade module in the 'Estimated borrowing cost per day' field. The borrowing rate will be fixed when the position is opened and will be charged on a monthly basis. Please be aware, that for certain corporate action events, the borrowing rate on the short position may be reset to the current rate in the market, upon the execution of the corporate action.

If you open and close a CFD position within the same trading day, you are not subject to borrowing costs.

Positions held overnight in CFD Futures will be subject to a carrying cost.

The carrying cost is calculated on the basis of the daily margin requirement and applied when a position is held overnight. It is charged at the end of each month.

The funding rate used for calculating the carrying cost is based on the relevant Alternative Reference Rate + mark-up of 1.5%.

Carrying Cost = Margin requirement * Days held * (Relevant Alternative Reference Rate + Markup) / (365 or 360 days).

Please note that relevant benchmark rates are floored at 0%.

When you hold an Index or Single Stock CFD position overnight your position will be subject to the following credit or debit:

• Long positions incur a financing markup of +3.60%.
• Short positions incur a financing markdown of -3.00%.