Daily Rolling Bets Examples
Formula
| F = |
(P / U) x S x I
B
|
|
| F = | Overnight Financing | |
| P = | Closing price | |
| U = | Bet unit risk | |
| S = | Stake | |
| I = | Applicable interest rate | long bets: RFR + 2% |
| short bets: RFR - 2% | ||
| B = | Day basis (365) | |
Examples
EQUITIES: UK SharesLONG £10 Rolling Daily Bet – Halifax Bank Of Scotland (HBOS)
A £10 long bet on HBOS which has a closing price of 1084.4p would be equal to a £10,844 market exposure (your market exposure equates your bet to the number of shares you would have to buy from your stock broker to create the same risk and return; a £10 bet = 1000 shares). (1084.4 / 1) x 10 x 7.5% = £ 813.30 This is the annual cost of borrowing £ 10,844 at 7.5%. Divide this by 365 to reach the daily charge:
As you are long of an equity, your account would be charged this amount for the overnight financing. |
EQUITIES: Irish SharesSHORT €10 Rolling Daily Bet - Ryanair
Your account would be credited € 0.25 as overnight financing. |
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INDICES: UK IndicesSHORT €10 Rolling Daily Bet - FTSE Cash
Your account would be credited € 6.35 as overnight financing. |
INDICES: US IndicesLONG £1 Rolling Daily Bet – Wall Street Cash
Your account would be charged £ 2.71 as overnight financing. |
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CURRENCIESLONG £10 Rolling Daily Bet EUR/GBP
Your account would be charged £6.98 as overnight financing. |
CURRENCIESSHORT €5 Rolling Daily Bet EUR/GBP
Your account would be charged €0.23 as overnight financing. Normally, for a short position, you would receive the overnight financing rate. However this calculation has returned a negative number so in this case instead of you receiving the money you will be paying it. |
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All rates correct at 30th May 2007. All rates are determined by paddypowertrader and can change on a daily basis.