FX interest EUR/MXN

[cate]

Hi  @MongiIG or any one else at IG,

Just a quick question. There was no overnight FX interest applied to my EUR/MXN last night, and I also noticed on gold it was for 5 days.

I presume this week is a bit different because of Easter. Do you know if tonight is the usual Wednesday night 3X, and particularly what happens to the EUR/MXN this week?

Normally I try to avoid having any positions open that have big negative carry on a Wednesday night but wondering when that will hit this week.

Many thanks!

Cate

[OfentseIG]

3 hours ago, cate said:

Hi  @MongiIG or any one else at IG,

Just a quick question. There was no overnight FX interest applied to my EUR/MXN last night, and I also noticed on gold it was for 5 days.

I presume this week is a bit different because of Easter. Do you know if tonight is the usual Wednesday night 3X, and particularly what happens to the EUR/MXN this week?

Normally I try to avoid having any positions open that have big negative carry on a Wednesday night but wondering when that will hit this week.

Many thanks!

Cate

Hi @cate

Thanks for reaching out. 

As most pairs settle on a T+2 basis you usually pay 3 days of funding when you hold a position through 10pm on a Wednesday (paying for the weekend). As we have two bank holidays, it will cost 5 days overnight funding when you have your position open until Tuesday. 

Thanks, 

OfentseIG

[cate]

Thanks, @OfentseIG that's very helpful.

Still wondering why there was no FX interest applied to EUR/MXN last night though. Do you know?

 

[cate]

18 hours ago, OfentseIG said:

Hi @cate

Thanks for reaching out. 

As most pairs settle on a T+2 basis you usually pay 3 days of funding when you hold a position through 10pm on a Wednesday (paying for the weekend). As we have two bank holidays, it will cost 5 days overnight funding when you have your position open until Tuesday. 

Thanks, 

OfentseIG

Hi @OfentseIG,

Would you be able to check what is happening with EUR/MXN this week? Last night they applied only a single day of FX funding, and the night before none. I'm wondering which night the 5x rate will apply. I lifted all my other negative carry positions before 10 last night because I didn't want to be hit by the 5x charges so I don't know whether it was just EUR/MXN that was different or whether none of them did what you expected. I don't want to put everything back today and get hit with 5x interest tonight.

Thanks,

Cate

[OfentseIG]

6 hours ago, cate said:

Hi @OfentseIG,

Would you be able to check what is happening with EUR/MXN this week? Last night they applied only a single day of FX funding, and the night before none. I'm wondering which night the 5x rate will apply. I lifted all my other negative carry positions before 10 last night because I didn't want to be hit by the 5x charges so I don't know whether it was just EUR/MXN that was different or whether none of them did what you expected. I don't want to put everything back today and get hit with 5x interest tonight.

Thanks,

Cate

Hi @cate

We can check with the relevant team for you. How long did you have EUR/MXN open? We are unable to ask further information on your account as this is a public platform. If you are able to confirm the time you opened and closed the position, we would really appreciate it. 

Thanks, OfentseIG

[cate]

Thanks @OfentseIG. I didn't want to bother you with all that.   I'm not worried about what happened,  just wondering if  tonight was going to be the 5x since it wasn't last night. But probably safest to close things down now before Easter anyway because things can be a bit unpredictable, so I've closed out my EUR/MXN positions.

Thanks again, 

Cate