Jump to content

Daily Commodities Interest that IG charge


furnessc

Recommended Posts

Could someone explain the outrageous Daily Commodities Interest that IG charge when one has a long position in Oil? I understand that in addition to the carry interest, the major element relates to a daily adjustment between the next two months future prices.

 

Having spoken to their support, I was told that these charges are a way of adjusting the price during the month. He went on to say that it was not really a net cost since we get it back in a lower margin on the basis that they would require a higher margin had they used an alternative approach.

 

This smacks of a scam as the margin is not a “cost” as such. More importantly we are for ever chasing a moving target as our purchase price is also inflated. So even if one is showing a profit, in fact after these charges one is making a huge loss.

Link to post
  • 2 weeks later...
On 26/06/2020 at 01:04, furnessc said:

Could someone explain the outrageous Daily Commodities Interest that IG charge when one has a long position in Oil? I understand that in addition to the carry interest, the major element relates to a daily adjustment between the next two months future prices.

 

Having spoken to their support, I was told that these charges are a way of adjusting the price during the month. He went on to say that it was not really a net cost since we get it back in a lower margin on the basis that they would require a higher margin had they used an alternative approach.

 

This smacks of a scam as the margin is not a “cost” as such. More importantly we are for ever chasing a moving target as our purchase price is also inflated. So even if one is showing a profit, in fact after these charges one is making a huge loss.

Yes, I noticed the high daily overnight interest for Gas. It is so much higher than the Equities CFDs. My overnight Equities CFD was -$0.08 to Gas -$5.40. The notional value is just 4x the Equities.

Link to post
  • 4 weeks later...

long the futures contract instead, bigger spread but no daily charges

these massive carry charges have been a "feature" of ig oil since the massive swings started, although i'm not clear why they have persisted now the gap between the spot and futures prices is minimal again. bear in mind you actually get paid these huge fees if you short spot oil, so i'm not sure calling it a scam is accurate.

out of interest, what is the fee per point

Edited by funkyfred
  • Like 1
Link to post

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • General Statistics

    • Total Topics
      13,681
    • Total Posts
      68,336
    • Total Members
      57,235
    • Most Online
      5,137
      14/01/21 09:51

    Newest Member
    nguye0909
    Joined 20/01/21 01:59
  • Posts

    • So trading has opened and the value of the shares is still wrong. Time to move brokers. Matter for the FSA?
    • Yardley Yeadon @MichaelYeadon3 11h Replying to @itvnews @MattHancock No variant is proven to be more harmful that the original. The trend of respiratory viral evolution is to lower lethality & greater ease of transmission, which is consistent with there being 40 viruses which cause symptoms of the common cold. You’re fighting evolution, just stop   Meanwhile this web site extols the virtues of jogging and cycling wearing a mask, while the video below it has a more realist take on masks. Joggers and cyclists should wear masks – here's why (theconversation.com)       .
    • So, I contacted IG support. They said it would be a WEEK before I could access my shares. A WEEK! Any chance of profit gone, left with the pickings after the market has taken whatever value it wants out of the new company. Still waiting for feedback from 'the enterprise team', whoever they are. FT has my holding up by 28.6% in shares, plus whatever premium the market adds (currently around 7%). Unacceptable.
×
×
  • Create New...