Mini-Future Certificates are available in both long and short versions. Investors who expect the price of their chosen underlying to rise would buy a Mini-Long Certificate, those who anticipate a downward price trend would buy a Mini-Short Certificate.

As with all leveraged products, investors have to pay financing costs. They do so in the case of a Mini-Future Certificate via a daily adjustment of the Financing Level. This means that the Financing Level does not remain constant throughout the life of the Mini-Future Certificate but is instead adjusted on a daily basis. It is therefore recommended that investors accurately manage their positions in order to balance actual costs and gains expected from their strategy.

Changes in the Financing Level are determined by the following factors:

• The Market Rate in the currency of the underlying
• An Interest Rate Margin (Financing Spread) set by BNP Paribas
• Any dividends paid out on the underlying (Dividend Adjustment Amount)
• Rollover of the underlying futures contract (for Mini-Future Certificates on commodity futures)

The following calculation is used to adjust the Financing Level:
Financing Level_tomorrow = Financing Level_today x (1 + Financing Rate_today)^1/360 - Dividend Adjustment Amount

Whereas the Financing Rate of a Mini-Long differs from the Financing Rate of a Mini-Short:
Mini-Long: Financing Rate = Market Rate + Financing Spread
Mini-Short: Financing Rat= Market Rate – Financing Spread

Any dividends (after tax) paid out are deducted from the Financing Level by BNP Paribas on the underlying equity‘s ex-dividend date for both Mini-Longs and Mini-Shorts.

Please note: BNP Paribas can also charge the financing costs during the trading day, which means that day traders (who buy and sell their position within one trading day) may incur financing costs too