Costs of a spread bet

[Hampshire321]

Hi,

I have been routed through to the IG platform via the Robbie Burns Spread Betting book. 

In his book he says the cost of a spread bet left overnight for 3 nights using DRP with IG is 'pennies' . However when I've looked at the costs per spread example on the IG website I have found the following:

Admittedly Robbie's book was written in 2019, but have the costs of spread betting really gone up by that much?

Cheers

Hampshire123

[Hampshire321]

Hi, sorry to bump this thread but does it really cost over a tenner please to leave a spread bet open overnight?

[ArvinIG]

6 hours ago, Hampshire321 said:

Hi, sorry to bump this thread but does it really cost over a tenner please to leave a spread bet open overnight?

Hi @Hampshire321,

The above example is for 3 nights. 

Now the SONIA rate is 1.72% roughly.

It will depend on the amount per point you are holding and closing price.

Thank you - Arvin
 

[Hampshire321]

Hi @ArvinIG, thankyou for replying

I was looking at taking a £2 per point spread bet on BP this morning where the opening price was 425.5p with a take profit at 440.5p. The closing price today was 426.5p

In this instance please how much would it cost me per night to leave the spread bet open?

Many thanks

H123

 

[Hampshire321]

Hi,

I'm looking to trade for real once I know the answer to the above, can anyone advise please?

Thanks

H123

[AndaIG]

Hi @Hampshire321

Thanks for reaching out, 

The formula for overnight funding on shares is as follows: 

Bet size x price x (country's interest benchmark +/- IG admin charge) / 365

Using your example above:  2 x 426.5 x (2.5% + 1.7231%) /365 = GBP 0.09 per night

All the best, 

Anda

 

[Hampshire321]

Hi @AndaIG

That's great, thanks so much for the clarification 😀

H123