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# overnight funding cost on lumber

## Question

Hi the interest i have been charged for a overnight 0.6 contract position on lumber is \$106 amounts to a interest rate of almost 100% on the gross position. I have calculated the rate based on your website and CME quoted futures rate and it should be no more than a few dollars, think there a error and difference should be refunded.

https://www.ig.com/au/help-and-support/cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-

You’re short one 0.6 contract on Lumber  A\$1
T2 – T1 = 31 days
P2 price is 858.3 CME source
P3 price is 765.8 CME source

Basis = ( 765.8– 858) ÷ 31 = A\$1.51
IG charge = 78246.3 x 2.5% ÷ 365 = A\$5.359

Adjustment = (0.6xA\$1) x (A\$5.359 - A\$1.51) = A\$19.36*

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