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Overnight charges


Cedric

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Hi @Cedric

Thanks for reaching out, 

When trading FX pairs you are effectively long one currency and short the other. When you hold a position overnight you earn interest on the currency you are long and pay interest on the currency you are short. This interest differential between the two currencies is what determines whether you pay or receive interest on a position held overnight. This is a simplified explanation but I hope you get the concept. In reality we use the TOMNEXT rate (a tradeable swap rate) which we would then add a 0.8% admin fee to. You can add the swap rates inclusive of the admin fee to the platform so that you are able to get an indication of whether you are paying or receiving interest on a particular pair. You can learn more about this here: 

All the best, 

Anda

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19 hours ago, Cedric said:

I can understand the charges for an overnight trade. But how does the DEPO work ???

Hi @Cedric,

Thank you for your post. 

By Depo do you mean the margin requirement?

The maintenance margin, also known as variation margin, is extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times – covering any running losses.

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/margin/what-is-margin

Let us know if you meant something else we will be able to assist you.

Thank you - Arvin

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On 04/07/2022 at 06:48, ArvinIG said:

Hi @Cedric,

Thank you for your post. 

By Depo do you mean the margin requirement?

The maintenance margin, also known as variation margin, is extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times – covering any running losses.

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/margin/what-is-margin

Let us know if you meant something else we will be able to assist you.

Thank you - Arvin

In my history of the trades I get an overnight charge but sometimes I get a credit (DEPO) Why is this ?

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