# Costs and Charges

Costs and Charges for Retail and Professional Clients for Financial Instruments

This section of the website presents the costs and charges associated with our products and markets, when trading CFDs. It specifies information on the methodology used to calculate our costs and charges and provides multiple examples, for the clients, to have the best understanding regarding Costs and Charges.

It is noted that the methodology used to calculate our costs and charges is the same for both Retail and Professional Clients. For brevity purposes, the examples provided herein are relevant to the costs and charges of Financial Instruments available for Retail Clients.

It is important to understand that the total costs will increase in proportionate basis given the size and volume of the open positions.

When the client opens a position on one of the products available in the platform, the following fees will be deducted from the client’s equity, i.e. the margin deposited or paid for the financial instrument plus any unrealized profits or unrealized losses due to changes in the value of the underlying:

Financial Instruments

R1investing is offering 5 categories of instruments, as shown below:

• CFDs on Forex Pairs
• CFDs on Commodities (Energy, Agriculture, Soft, Metals)
• CFDs on Indices
• CFDs on Shares
• CFDs on Virtual Currencies

Methodology

Kindly note that this section provides information on the methodology used for the calculation of the costs and charges associated with the financial instruments offered by R1Investing , for both Retail and Professional Clients.

When you trade with R1investing CFDs on various underlying assets the below charges will be applied in your account:

• Financing Fee Charge

2. Financing Fee Formula

The fee is charged in the instrument’s Base currency and calculated as follow:

For FX pairs:

 Fee Value = Volume x Contract Size x Markup Value x Days

For CFD instruments:

 Fee Value = Volume x Contract Size x Reference Price* x Markup Value** x Days

*Reference price is the market price at the end of each month

**As provided in the table below:

 MARKUP VALUES Asset Type Long Short FX Majors -0.000484 -0.000484 FX Minors -0.000484 -0.000484 FX Exotics -0.002032 -0.002032 World Shares -0.003505 -0.003505 Indices -0.001349 -0.001349 Metals -0.000500 -0.000500 Energy -0.000950 -0.000950 Commodities -0.000400 -0.000400 Cryptocurrencies -0.025000 -0.025000 Bitcoin -0.015000 -0.015000 Bitcoin CNY -0.025000 -0.025000

3. Net Profit/Loss Calculation Formulas

 Net Profit/Loss Calculation = Realized Profit/Loss – (Financing Fee + Swap)

where:

Realized Profit/Loss = (Closing Price – Opening Price) x Volume x Contracts Size

For a Sell Position

Realized Profit/Loss = (Opening Price – Closing Price ) * Lots * Contracts Size

Examples

This section provides information on the procedure to be followed for the calculation of the net profit using different examples of the financial instruments offered by the R1Investing .

1. CFDs on Forex
Assume that you hold a EUR trading account with R1Investing .

You decide to open a BUY position on EURUSD for 0.01 lots at a price of 1.22984, for 1 day.

 Financial Instrument CFD on Forex EURUSD Direction of Position Buy Minimum Spread 0.00021 Volume in Lots 0.01 Contract Size 100.000 Number of Days 1 Opening Price 1.22984 Closing Price 1.23028 Currency Conversion Rate[1] 1.23028

 Spread charge calculation = (0.01) x (100,000) x (0.00021) = 0.21 USD = 0.18 EUR

IMPORTANT NOTES:

• The result shown in the calculation been converted from USD to EUR which is the denominated currency of the trading account.
• The spread used for this example is the minimum variable spread but this is subject to changes under extreme trading market conditions.
• The spread is deducted once position is opened. Please refer to our website for further information.

⮚ Financing Fee Calculation

 Fee Value = (0.01) x (100,000) x ( -0.000484) = -0.49 EUR

IMPORTANT NOTES:

• Financing Fee charges are calculated in the base currency of each instrument.
• Please refer to our website for the swap charge per instrument.

⮚ Net Profit/Loss Calculation

 Net Profit/Loss Calculation = Realized Profit/Loss + (Financing Fee + Swap Charge) = (1.23028 - 1.22984) x (0.01) x (100,000) – (0.49 +0.18) = 0.23 EUR

2. CFDs on Commodities (Energy)

Assume that you hold a GBP trading account with R1Investing .

You decide to open a SELL position on CL-APR21 of 0.10 lots (lots * contract size) at a price of \$53.03 for 2 days.

 Financial Instrument CFD on Forex CL-MAR21 Direction of Position Sell Minimum Spread \$0.20 Volume in Lots 0.10 Contract Size 1,000 Number of Days 2 Opening Price 53.03 Closing Price 52.10 Currency Conversion Rate GBP/USD 1.39175 Reference Price for CL-APR21 51.78