How is interest calculated on MTF?

Interest on MTF is typically calculated daily on the funded (broker-financed) portion of the position, at an annualised rate the broker sets, which commonly falls somewhere in a wide range depending on the broker, often between roughly 8% to 18% per annum, so you always check the specific rate your broker applies rather than assuming a standard figure across the industry. It accrues for every day the funded position remains open, including weekends and holidays in most cases, since interest is calculated on a calendar-day basis in most broker structures rather than only on trading days. The longer you hold an MTF position, the more the accumulated interest eats into your eventual profit (or adds to a loss), which is why MTF tends to make more sense for a shorter holding period with a specific price target in mind, rather than as a long-term leveraged holding strategy. You check the exact interest rate and whether it’s calculated daily or monthly before opening an MTF position, since the compounding effect over several months can meaningfully change the breakeven price you need for the trade to be worthwhile.