What you will learn
- Overnight financing
- Weekend treatment under provider terms
- Futures rollover costs
- ETF expenses and tracking differences
Overnight financing
An overnight charge depends on the actual account's funding terms and the dates the position is held. Record the charge as a cost of that trade or allocate it consistently when several positions share an account-level adjustment.
Weekend treatment under provider terms
Weekend and holiday treatment may involve specific charging dates or multiples under provider terms. Do not infer the charge from the number of calendar nights alone. Verify the schedule and preserve the applicable term version.
Futures rollover costs
Rolling futures generally involves closing or reducing one expiry and opening another. Costs can include bid-ask spreads, commissions and changes in the contract price relationship. A back-adjusted chart can conceal a roll gap without removing the economics.
ETF expenses and tracking differences
Fund expenses reduce the fund's value over time under its structure. Tracking difference also reflects other factors, so it is not always equal to the advertised expense figure. Compare the same reference, currency and period when evaluating a fund.
Worked example
A trade makes 40 from its actual entry and exit prices, pays 6 commissions and 9 allocated financing. Net result is 25. Reporting 34 would omit the holding-period charge and overstate the trade's contribution.
Try it yourself
Reconcile gross price P&L of −20, commissions of 4 and financing of 3. Explain whether the financing becomes irrelevant because the trade lost money.
Show the worked solution
Net result is −27. Costs matter for both winners and losers. Removing charges from losing trades would systematically distort the sample's performance.
Apply this to your course project
Compare two hypothetical trade statements and explain their different net outcomes.
Keep the calculation inputs, assumptions and decisions with your work. Practical exercises are self-reviewed; the scored knowledge checks assess the questions shown, not an independent certification of practical competence.