A holding charge depends on how long the position stays open

platformPublished 20 October 20261 min readmulti asset

Key points

• A same-day round trip and a position held overnight can have different bills.
• The rate, the day-count and the direction of the position are terms to read.
• This note does not publish a financing rate.

What is going on

Contract-for-difference and similar rolling contracts often adjust the position by a financing amount when it is held past a cut-off. The amount can depend on an interest benchmark, a markup the firm sets, and whether the position is long or short. ESMA’s product-intervention materials and FCA retail disclosures treat financing as a cost that should be visible. A listed future instead embeds carry in the contract price and expires.

Why it matters

A strategy that is cheap to enter can be expensive to hold. Comparing two firms on the spread alone ignores a charge that accrues with time. Comparing a bilateral rolling contract with a listed future as if the bills matched is a category error.

What to watch

Read the formula, the time it is applied, and whether weekends or events use a different multiple. If the document does not state the formula, the cost is not verified.

Risks

Benchmarks and markups change. A short position can receive or pay, depending on the terms. Nothing here is a current rate.