Reduce CFD financing cost by depositing more
Is it possible with any brokers / spread betting firms that charge contract for difference financing fees to reduce those fees by depositing more money to your margin account after your position was opened?
Say, you had a large long position that was profitable but overnight financing cost was eating away chunk of your profits. Is it in general possible with brokers to let you deposit more cash to your account to reduce those costs without closing the position?
Thanks!
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You don't usually trade cfds through a margin account, instead each individual trade or position is traded on margin.
If you deposit more money into your account it does not affect the margin on individual positions, because you are effectively borrowing on every position. But the interest rate should only be around 4%p.a and it is only charged daily ( per day per 000 position). So if it is eating into your profits, your profits must not be too large.
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