The following journal entry is passed when
|
Journal Entry |
|||
|
Date |
Particulars |
Debit (US$) |
Credit (US$) |
|
1-Oct-X1 Account |
CFD Funding Cost |
60.00 |
|
|
To CFD Margin Account |
60.00 |
||
|
(Being the funding cost to carry over the long position of CFD in respect to shares bought.) |
a. The buyer of the CFD contract is financed with the leverage amount
b. The interest is paid towards the overnight open position
c. The seller of the CFD contract is financed with the leverage amount
d. The interest for the overnight position is received
e. The buyer of the CFD contract pays the margin amount