Jump to content

Why are there overnight charges on a fully funded account


Recommended Posts

For Example

Lets say I am long 5 US 500 at 4500 a unit = £22,500

and the Balance of my account is £30,000

Why on earth would I be liable for ovenight charges?

Edited by kabuki
cnage sp500 to US 500
Link to comment
5 hours ago, kabuki said:

For Example

Lets say I am long 5 US 500 at 4500 a unit = £22,500

and the Balance of my account is £30,000

Why on earth would I be liable for ovenight charges?

Hi @kabuki,

The overnight funding is not linked to your account balance. 

When placing a spread bet or CFD, you’re using leverage. This means you are effectively being lent the money required to open your position, outside the initial deposit you’ve paid. To keep your position open after 10pm (UK time),  4.50pm Sydney time for AUD-denominated products (indices and shares), an interest adjustment will be made to your account to reflect the cost of funding your position overnight.

You don’t need to pay overnight funding for futures or forwards because we build that cost into the spread.

You can find further information here.

I hope that it helps.

All the best - Arvin


 

Link to comment

Thanks Arvin,

I realise that is the Corporate Line.

However it still makes no sense paying IG interest on a position whilst receiving no offsetting interest allowance on my larger balance.

The reason for my query is not so much the current rules under which I trade with my eyes open -

My concern is if interest rates take off - Overnight charges could be so usury as to make trading overnight a FOOLS mission (and of course leaving overfunded balances with IG earning no interest would make even less sense)

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Duplica tu diversión este mayo de 2024 con Stake.com usando el código “Hella200”. Este código promocional te otorga un bono de depósito del 200%, duplicando tu monto de depósito inicial. Esta oferta es perfecta para los jugadores que buscan maximizar su tiempo de juego y sus posibilidades de ganar. Simplemente ingresa el código durante tu proceso de depósito y disfruta de los fondos adicionales al instante. ¡Comienza tu viaje en Stake.com con un impulso usando “Hella200”!
    • Doublez votre plaisir en mai 2024 avec Stake.com en utilisant le code “Hella200”. Ce code promo vous accorde un bonus de dépôt de 200%, doublant ainsi le montant de votre dépôt initial. Cette offre est parfaite pour les joueurs souhaitant maximiser leur temps de jeu et leurs chances de gagner. Il vous suffit d’entrer le code lors de votre processus de dépôt et de profiter instantanément des fonds supplémentaires. Commencez votre aventure sur Stake.com avec un coup de pouce grâce à “Hella200”!
    • Verdopple deinen Spaß im Mai 2024 mit Stake.com, indem du den Code „Hella200“ verwendest. Dieser Promo-Code gewährt dir einen 200% Einzahlungsbonus und verdoppelt damit deinen ursprünglichen Einzahlungsbetrag. Dieses Angebot ist perfekt für Spieler, die ihre Spielzeit und Gewinnchancen maximieren möchten. Gib einfach den Code während des Einzahlungsvorgangs ein und genieße die zusätzlichen Mittel sofort. Beginne deine Stake.com-Reise mit einem Boost durch „Hella200“!
×
×
  • Create New...
us