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Pricing > Interest and Financing > Interest Rates

Overview

 

Interest Schedule

 

Calculations

 

Lowest Margin Rates

 

Compare Rates

 

Benchmark Rates 

 

 Interest Paid to You 

 

 Interest Charged to You

Examples of Interest Rate Calculations 

 

 

 

Interest and Financing: Interest Paid to You

 

For questions about interest rate issues:

Please use the Inquiry Ticket or Chat system located in the Support menu of Account Management. 

 

 

Interest Paid to You on Positive (Credit) Cash Balance

When calculating rates, keep in mind that PT uses a blended rate based on the tiers below.

PT accrues interest on a daily basis and posts actual interest monthly on the 3rd business day of the following month.

The tiers which interest is based upon may change from time-to time without prior notification to customers. Such adjustments are done periodically to adjust for changes in currency rates.

 

 

Examples of Interest Paid to You

 

Interest on Debit & Credit Cash Balances

Interest on Short Sale Proceeds

 

 

For the example below please assume the benchmark rates are as follows:

Benchmark (BM)

Rate
US Dollar Fed Funds Effective 1.00%
EONIA (Euro Overnight Index Average) 2.080%
GBP LIBOR (Overnight Rate) 4.439%

 

 

       Example 1 - Interest Paid To You (USD)

When you have an excess positive cash balance, we'll pay you daily interest on that balance as follows:

 

 

Statement Reflects

USD Securities Commodities Total
Ending Settled Cash 50,000 0.00 50,000
 

 

Cash

 

Interest

 

Calculation

10,000 0.00

(10,000 x 0/360)

 

40,000 0.56

[40,000 x (1.00%-0.50%)/360]

 

Credit interest received 0.56

 

 

 

Interest Paid to You on Positive (Credit) Cash Balances

Interest Paid to You on Positive (Credit) Cash Balances

 

Interest Paid to You on Short Sale Proceeds Cash Balances

 Interest Paid to You on Short Sale Proceeds Cash Balances

 

Click here to view our Examples of Interest Calculations Page

 

Learn about our Stock Yield Enhancement Program

Notes:

Examples are shown for informational purposes only. Rates are subject to change without notice.  

Minimum interest rates on credit cash balances is 0%. Interest charges will never be applied to credit cash balances.

Costs for position borrowing of stocks with special considerations (for example, hard to borrow instruments) are usually higher than for normal availability stocks. These additional costs will be passed on in the form of lower short stock credit interest. Please note that this may lead to a net debit short stock credit interest in the event that the costs to borrow exceed the interest earned. In order to view the indicative short stock interest rates for a specific stock, Place Trade recommends that customers utilize the Short Stock (SLB) Availability tool located under Account Management/Tools.

*3: The same rate applies to all balance amounts for ILS; there are no tiers.
*2: The same rate applies to all balance amounts for INR; there are no tiers.


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