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US 500 and Spot Gold on Spread Bet account


JakubC

Question

Hi,

I just created an account and have a long position in Spot Gold and consider a long position in US 500.

Could you please tell me if I pay overnight funding charges if I buy these on margin and hold them for 3 months or 3 years?

I have  a spread bet account.

Many Thanks

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Hi Jakub,

If you are making trades spanning more than one session you might want to use "Futures" instead of "Daily Funded Bets".

By using a DFB you will be charged borrowing costs each day, if you use Futures instead you are not charged daily  but you pay a "wider" spread. The spread for a DFB position on the US 500 is at 0.4 market hours and 0.6 outside market hours. For the futures contract is 1. 

Futures have a quarterly expiration date, you can find US500/ES contract expiration dates here https://www.cmegroup.com/trading/equity-index/rolldates.html. In your case you will need "Rollover on Expiration" enabled in your account settings to keep them open for three years. Each quarter you rollover to the next and you are charged 1 point spread as commission.

Good luck

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