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you are a mug to run overnight positions with IG

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it seems you can not win running overnight positions with IG .. apart from the ridiculous funding costs 

ther number of times you seem to be stopped at the artificial markets they make can not be random 

standard excuse .. market conditions meant we needed to widen spreads 

at least the local casino gives you free food and drinks as they do you over .. 

 

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@london

The only way you can win against charges for overnight positions is to trade with the trend. The stronger the trend the better. If the trend goes against your long or short position then IG wins as they will happily take the overnight charges. IG are there to make money and profits. Traders need to be ruthless and look at the rules and build this into their trading strategy.

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Regarding overnight funding charges, there are two sides to the coin. A few weeks ago I had DFB positions on Silver and EUR/USD which both ran for weeks. Because I was short, I received the daily funding as a credit to my account each night. If I had been long then I would've been debited, but then I wouldn't have traded the spot price for positions open that long. Of course, not all markets pay out a funding credit for trading in a particular direction, so it's important to check the rates first. Exploiting this to your advantage is something all traders should consider when planning to hold a trade overnight, just as @TrendFollower says:

3 hours ago, TrendFollower said:

Traders need to be ruthless and look at the rules and build this into their trading strategy.

 

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@LeoTrader,

Yes, quite right.

You make a very important point that a lot of traders do not realise about IG paying interest credit on short positions that are held overnight.

This is why shorting can be lucrative if you identify and trade the right shorting opportunity. Excellent point. Not only do you profit from the trade but receive interest credit so seriously worth considering.

A lot of traders on IG Community do not seem to discuss shorting much at all. They identify reasons using technical analysis, charts, arrows and everything under the sun as to why not to enter a long trade but they do not seem to discuss shorting that very trade.

 

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21 hours ago, TrendFollower said:

They identify reasons using technical analysis, charts, arrows and everything under the sun as to why not to enter a long trade but they do not seem to discuss shorting that very trade.

Very true. There's definitely a long bias amongst traders, collectively speaking. Even when an uptrend has technically reversed, many will refuse to go short but won't hesitate to go long at the mere hint of a new uptrend. The bears capitalise on this during a long squeeze and that's when we see markets unwind so rapidly. Those big red candles, that's bulls' blood! 

Edited by LeoTrader

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@cryptotrader,

If you look at my post then it was for the attention of @LeoTrader. If you find my post boring then I suggest you better utilise your time and do not waste your energy even responding.

@LeoTrader, now back to our discussion. Yes, I agree there does seem to be a bias towards the 'long' trade. Even when traders have price action and charts they explain why they would not go long but do not explain why they should or would go short. There is always an excuse and a reason at the end of the technical analysis of why they would not trade what they are analysing. Now this may be exceptional technical analysis supporting quality risk management so I could me misreading their posts. I will keep an open mind as sooner or later all the charts, arrows and analysis must surely lead to either a 'short trade' or 'long trade'. Let's see.

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If you want to avoid overnight fees you should look at IG's "futures". They have a little bit wider spread but you can hold them until maturity without paying anything at all.

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Guest JTSoggz

Does anyone know why long USD/JPY positions havent been paying any interest over the past few days? i have the position in my demo account but cant see a credit for my long position since 28/12

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I run and pay overnight charges to IG using their 'Spread Betting' services. 

One must remember that IG are a business which aims to make as much profit as it can by offering products and services to facilitate the trades we wish to participate in and execute. It is obvious that there are going to be overnight charges. Why wouldn't there be? It is our choice if we wish to pay them and keep positions running overnight or not. 

I hold positions for weeks and months if the trend is long enough and if the trend is strong enough. This means I will pay IG plenty of overnight charges. However, it is a very small price to pay if you are trading a long and strong trend which is extremely profitable especially when using 'leverage'.  To me it then all becomes about the level of service, margin requirements, pricing spreads and effective execution of the trades.

The issue arises when traders are participating in loss making trades which they decide to keep open overnight over several days or weeks. The costs are simply not worth paying so one must have effective stop loss risk management in place.

Also one must cut their losses short and get out as quickly as possible when they are on a losing trade or have extremely 'deep pockets'. Deep pocket strategy can be effective as it means you can afford to pay the costs to stay in a position in which you are losing simply because of timing issues but the trade itself is correct more longer term and the 'deep pockets' can help to ride this out. This strategy is not the faint hearted and one really must have deep pockets as it can take time for the trade to recover so this strategy is highly capital intensive. 

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1 hour ago, Guest JTSoggz said:

Does anyone know why long USD/JPY positions havent been paying any interest over the past few days? i have the position in my demo account but cant see a credit for my long position since 28/12

Hey - there is a Bank Holiday in Japan this week until Friday, and therefore no overnight interest. Hope this clarifies things. All the best.

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