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Charged 3 days interest for index CFD despite closing positions before 10pm cut-off time
Asked by
elbak283,
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10/06/21 10:53
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Sadly insecurity is still one of the setbacks of crypto adoption. I reckon if all exchanges exhibit this concerted effort and commitment towards preserving the security of users' funds, the industry will be made more conducive and crypto adoption will be fast-tracked.
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Actually I presume it should be $400M+ by now cos it's one Exchange next to Binance that prioritize their users funds safety imho.
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This post is majorly for new crypto enthusiasts looking for good exchange to explore however it is also beneficial to those who already have an exchange they are using. Coinmarketcap and Coingecko is one place new users can explore to find out about the ranking of crypto exchanges however one must do other research not to base his/her judgement only on the position the crypto exchange occupies on this platforms. Other factors like user protection fund, proof of reserve and regulatory compliance must be considered before choosing a CEX especially with the evolving regulatory landscape from different countries which have forced some exchanges out of some countries. From the point listed above, Binance and Bitget take the industry lead in protection fund with $1b and $401m respectively and have verifiable Proof of reserve whose public address can be seen and viewed by their users but when it comes to regulatory compliance, Bitget is number 1 as the exchange is operating in most countries where other top cex are not operational. The visit to the respective cex website and mobile app also indicate users interest and popularity of the exchanges. Below is the ranking of top crypto exchanges by weekly visit. The figure below is only for website visit excluding mobile app. It is important to note that this exchanges were not founded the same year hence it's understandable to see clear difference in the number of website visit. HTX and Gateio were founded in 2013, 10 years in the industry. Kucoin, Binance and OKX were founded in 2017 and MEXC, Bitget and Bybit were founded in 2018. The above exchange are all good exchanges for new users to explore. Which of these crypto exchange do you use and why do you choose it over others?
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Question
elbak283
Hi,
Last Friday, I wanted to hold an index CFD cash short for a longer period of time, so I closed the short and immediately opened a short CFD futures on the equivalent index for the equivalent exposure. I did this because I specifically wanted to avoid overnight funding interest charges, which according to IG's website, will apply in the following circumstance:
"Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend."
Source: https://www.ig.com/au/help-and-support/cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-
I had taken out 40 US 500 Cash (A$1) short contracts at the beginning of the week last week, and closed it out on Saturday 14 Aug at 2:11 am Australian Eastern Standard Time. This is approx Friday 13 Aug at 5:11pm in UK time (Australia is approx 9 hours ahead of the UK). The short was the only active position on my CFD account. I then opened a short SEP-21 futures contract.
I went to bed thinking that because I closed my position 4 to 5 hours before the 10pm Friday UK time cut-off date, I had avoided overnight interest charges.
This morning, I go to check my transaction history, and find that I've been charged A$43.20 under description of "short interest for 13/08/21 to 15/08/21".
Can anyone help me understand why I've been charged overnight funding interest for 3 days, when I closed my index CFD on Friday afternoon UK time? I thought I did everything right - switching to futures from cash contracts before the cut-off time avoid overnight funding, but apparently this is not the case.
Any help appreciated.
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