Glossary entry (derived from question below)
English term or phrase:
overnight interest
Dutch translation:
dagrente
Added to glossary by
Martijn Naarding
Dec 22, 2006 00:07
17 yrs ago
English term
overnight interest
English to Dutch
Bus/Financial
Finance (general)
investment CFD
Overnight Interest on CFD positions
When you buy a CFD, you are effectively borrowing money to pay for the CFD and you own money is there only to cover potential losses from the CFD position. For long CFD positions held past the end of the day's trading on the exchange, you pay overnight interest on the amount borrowed and this must be taken into consideration. In reality, this can make CFDs suitable mostly for short-term positions as longer term, financing costs can eat into potential profits.
When you buy a CFD, you are effectively borrowing money to pay for the CFD and you own money is there only to cover potential losses from the CFD position. For long CFD positions held past the end of the day's trading on the exchange, you pay overnight interest on the amount borrowed and this must be taken into consideration. In reality, this can make CFDs suitable mostly for short-term positions as longer term, financing costs can eat into potential profits.
Proposed translations
(Dutch)
3 | dagrente | Wouter van Kampen |
Proposed translations
5 hrs
Selected
dagrente
Als ik het goed begrijp betaal je iedere 24 uur rente over het bedrag dat je geleend hebt om CFDs in portefeuille te houden.
The main feature of CFD is that the instrument under the contract is not really shipped in the process of trading. It means that, for example, you can buy a
Contract For Difference (CFD)
on 200 shares of IBM instead of buying 200 shares of IBM on an exchange.
The main feature of CFD is that the instrument under the contract is not really shipped in the process of trading. It means that, for example, you can buy a
Contract For Difference (CFD)
on 200 shares of IBM instead of buying 200 shares of IBM on an exchange.
3 KudoZ points awarded for this answer.
Comment: "bedankt."
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