Short interest on short CFD positions

Discussion in 'Trading' started by Maverick2608, Feb 7, 2018.

  1. For short open CFD positions, I will generally be paid interest.

    The broker opens a matching short hedge position in the underlying stock. I assume the broker will incur a short interest fee on the hedge position.

    Will I pay the short interest fee or is it just incorporated by making the interest paid to me lower than it would otherwise have been?
     
  2. spread'em

    spread'em

    I know that they will pay a borrow fee on the stock as you mentioned so usually this is taken into account of what you are paid out.
     

  3. Thank you.

    I am paid around 0.5% on short CFD positions. But since short interest fees often exceed 0.5%, I guess I also have to pay the short interest fee on the hedge short stock position of the broker.