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 An introduction to Financial Spread Betting
 
What is Spread Betting?
What is a spread?
What is margin?
What is financing?
Spread Betting explained
What are the risks?
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You are here: Home > Spread Trading > Introduction > What is financing?

An introduction to Financial Spread Betting

What is financing?

When you trade using margin, RBS Spread Trading is effectively loaning you money to cover the cost of your trading position.

Therefore as with all loans, RBS Spread Trading charges interest to cover the position for each night it is open. Financing is charged against the total value of your position and is based on London Interbank Offered Rate (LIBOR) +/- 2.5%. Since LIBOR is variable, the financing rate will also fluctuate. An example of how financing is applied can be found in the financing example section.