Glossary - I

This glossary defines terms used throughout SMC Trader.  A version of this glossary is also accessible through the SMC Trader platform.

The definitions are broken down as simply as possible to ensure you have full understanding of how the SMC Trader works.

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Interest »

Interest is a charge applied to borrowed money, and is generally expressed as a percentage per year.

When buying CFDs, you are in principle loaning money for a trade, so you are charged a standard interest rate based on the current LIBOR (London Interbank Offer Rate) plus a small percentage.

When you sell a CFD, on the other hand, you receive interest for the amount the CFD represents. This percentage is the LIBID rate minus a small percentage.