How Our Products Work

What is Financing

When you trade using Margin, CMC Markets is effectively loaning you money to cover the cost of your trading position.

Therefore as with all loans, CMC Markets charge interest to cover the position for each night it is open. Financing is charged against the total value of your position. This charge is based on Libor + a percentage amount for UK stocks or the equivalent rate for the specific country of origin of each instrument. Since Libor is variable, the financing rate will also fluctuate. An example of how financing is applied can be found in the Product Trading Example section.