Overview of CFD Credit Financing Costs

Overview Of Annual Financing Costs

Here is a short overview of the annual financing costs of the CFDs in the portfolio.

S & P 500: 3,726%
Citigroup: 5,475%
BRK.B: 6,08%
BAC: 4,56%
KHC: 17,52%

Decision To Change KHC From Leverage X2 To Leverage X1 But With 3,2 Times More Capital

As the short - medium term development of my X2 - leveraged KHC trade was negative and stock prices got even lower I decided to allocate more capital into the KHC trade and eliminate the annual financing costs of KHC. The long term outlook for this stock is still great.

My first copy trader Gordon Roth who invested some capital into my strategy should fully benefit from this trade as I did not raise capital. There was a cash position waiting for the opportunity to buy into Citigroup at a stock price at 68$ when Gordon copied my portfolio. However Citigroup did not reach that low price target to allocate more capital towards Citigroup so that capital was applied to this KHC trade.

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