Jump to content

Quarterly Rollover cost


Guest bloodline

Recommended Posts

Guest bloodline

I got an email that Quarterly rollovers will no longer include concessions.  I will like to get a clearer idea and some detailed breakdown of the total cost of rolling over positions per quarter, assuming that 3 months libor is 0.40%.  

 

Also, is it possible to roll over into more distant quarters i.e 6 months, instead of 3 months?

 

Many thanks

 

 

 

 

Link to comment

Hi ,

 

You are correct, recently a business decision has been made to no longer rollover quarterly share contracts with a spread concession.

 

Instead your position will be closed at the bid/offer (depending if Long or Short) of the current quarterly contract you hold, and at the same time you will be opened in the next quarterly contract at the bid/offer (again depending if Long or Short).

 

As an example:

 

If you hold a long position on a stock in the SEP17 contract and wish to roll this over into the DEC17 the below would happen.

 

SEP17 price: 100 / 101

DEC17 price: 99.5 / 101.5

 

Your SEP17 position will be closed at a price of 100 and at the same time you will be opened long in the DEC17 at a price of 101.5.

 

To answer your second question, yes, you can roll to a further quarterly contract but you would need to call us to request this. For example, you could roll from SEP17 to MAR18.

 

In terms of the interest cost, our Forward quarterly contracts have interest priced in, this is why you see a wider spread.

 

In order to set automatic rollover instructions all you need to do is go to My IG > Settings > Rollovers.

 

Thanks,

MichaelC

 

 

Link to comment
  • 2 weeks later...

This is disappointing. This 'concession' has existed for a such a long time that there is a tacit understanding that it forms a defacto function of the platform, yet we are advised it is being withdrawn at short notice without explanation.

 

Given that it relates to quarterly (or longer) positions it would have been an appropriate courtesy to give at least 3 months notice of a 'change of terms' to enable users to consider how to best manage their roll-over positions.

 

The lack of explanation suggests that there really isn't one which is justifiable.

Link to comment
Guest bloodline

I think the only justification, as usual, is IG putting shareholders before customers.  The short notice for a major change in terms and conditions is rather discourteous and it makes the company very unreliable.  

Link to comment

Archived

This topic is now archived and is closed to further replies.

  • General Statistics

    • Total Topics
      21,256
    • Total Posts
      90,862
    • Total Members
      41,359
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    zybory
    Joined 04/02/23 19:09
  • Posts

    • The epidemic in recent years has produced profound changes in people's lifestyles, and many of their activities have started to be developed in the virtual world, which plays an important role in promoting the development of the universe of meta. Games, as an important part of the universe of meta, will be the first industry to gain the benefits , but the following conditions are still indispensable for blockchain games to achieve better development.   - Wallets and Exchanges. Through the use of wallets, game users can truly take control of the assets in the game, and exchanges provide a trading platform and liquidity for these game assets NFT, helping users trade and revitalize their game assets. Wallets are a key application for depositing blockchain assets. Currently, wallets such as Metamask are not enough to support the extensive adoption of block games, and wallets will further advance community drive the popularity of blockchain games.  - Game playability. The biggest difference between blockchain games and traditional games is that gamers are also investors. Many blockchain games have gone out of course, treating all users as investors only and forgetting that the essence of making games is to develop high-quality games that users are interested in paying for. If most people play a game just to make money, and no one is ready to pay for it, it becomes a side-scam. The revenue of the participants of the side scam comes from the money of the people who come later, and if there are not enough people who come later, they will not be able to cash in the revenue, leading to the breakdown.  - Speed and performance. A high level of concurrency is the characteristic of game applications, so Wax, Coinan Chain and Polygon, which are public chains with a high level of concurrency and low fees, have attracted a large number of game developers. In the future, with the maturity of technologies such as Ethernet Layer 2 and slice scaling, as well as the maturity of other gaming public chain technologies compatible with EVM, blockchain games will have a better development and operation environment.  - Cross-chain and interaction. Cross-chain and interaction of game assets will be a direction of future development of metaverse games, and blockchain should be connected and accessible like the Internet. The maturity of cross-chain technology in the future will promote the cross-chain transfer of game assets and NFT, and improve the interaction experience of the system                                                                                     The game should maintain the operation of the project by relying on the payment of some users or selling profitable products, just like the new blockchain game Fairy Cat in 2023, which developed diverse gameplay for players and increased the playability of the game, thus got the recognition of many players. Blockchain games need to work hard on game experience and playability. Token economics is essentially just a kind of interest structure , and even good token economics cannot replace the development, operation and profitability of the project itself. It is believed that with the maturity of the above conditions, more and more game developers and investors will enter this industry and together promote the production of some blockchain games with beautiful graphics, first-class experience and high playability.
    • Hello, Is any interest paid on "available" cash (not "margin") in a spread betting account? For example, if I held £10k in an account and had no open positions. The reason for asking is that I understand that proceeds from short sales in a CFD will receive interest (benchmark-2.5%), so was wondering if that applied to all cash, and couldn't find an answer on the web site.   Thanks.
    • Hi @Mark12 If you are trading shares, you will have the option to place a limit order to sell your existing position. When the market opens, please check if your order level is close to where the market is trading. All the best, OfentseIG
×
×
  • Create New...