Jump to content
  • 0

Overnight rolls

Question

Hi does anyone know the charges for overnight shorts in Dow Jones - I had 20 short position and was charged 200 quid - seemed steep ? Also, if I square at 1 minute to close and re instate 1 min after close of Dow , I’m guessing I don’t get charged roll ?

Share this post


Link to post

4 answers to this question

Recommended Posts

  • 0

Does anybody know how to calculate the cost of overnight funding, for example with a SP500 DFB spreadbet?

I have found some informaton on the IG website It mentions an "admin fee" however it doesn't say what this admin fee actually is.

Share this post


Link to post
  • 0

image.png.6526812eaa931f1aac10d4a45243b15a.png

image.png.76268ffab4342bad9eba7e0cf4d49e60.png

so Dow is using the USD rate and USD uses 360 instead of 365 in the calc so the IG rate (commission and libor) is 5.02% for a long trade and -0.02% for a short.

so to give the the full calc for the cost of the long trade in the example above is; (£6.69 overnight charge for a £2/point bet.)  see calc below

 

image.png.42c0c6fc4bf5cbf48c1869879e4d66e5.png

 

And for the £2/point short in the example; -£0.03 overnight charge (credit) see calc below;

image.png.3215582f2bff25b374e824abb550b266.png

So for your own calc you will need to use your £/point and update the closing price, the commission is set and the libor rate is currently fairly stable.

  

  • Thanks 1

Share this post


Link to post
  • 0

@andysinclair, unfortunately the snippets of information are somewhat scattered so it is difficult to bring it all together and the IG Wall street example in the post above was in a recent update to changes for the Libor used.

USD denominated markets now use the USD 1 month Libor rate rather than GBP 1 month Libor and also calculate the year as 360 rather than the 365 used in GBP denominated markets. 

Easy to see why it all gets confusing.

 

Share this post


Link to post

Your content will need to be approved by a moderator

Guest
You are commenting as a guest. If you have an account, please sign in.
Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • IG ISA Season

  • Member Statistics

    • Total Topics
      6,371
    • Total Posts
      28,278
    • Total Members
      37,101
    Newest Member
    lulub2000
    Joined 18/03/19 15:55
  • Our picks

    • Flowless rally - APAC brief 18 Mar
      A flowless rally: It’s being dubbed the “flowless rally”. Equities are ticking higher, but without the fundamental buying-support one might assume. This is especially so when considering the milestone achieved on Wall Street on Friday. Finally, the 2815 resistance level has tumbled, and the bulls have cautiously, quietly rejoiced. There are yellow flags popping up here and there, however, and that is making participants wary. It goes back to this “flowless rally” business: the latest leg of global stocks big recovery isn’t being supported by investor flows. In fact, investor flows look to have diminished somewhat. The reasoning behind this move is somewhat speculative. The impact of share buybacks is one popular argument. Whatever the cause, confidence isn’t accompanying this rally.


      Economic conditions deteriorating: Maybe market participants are still scorned from the market correction in 2018. A bitterness and cynicism stemming from that is understandable. Much of the frustration comes, it would seem, from a widespread recognition that this rally has come in the absence of solid fundamentals. On the contrary, if looking at the macro-outlook, there are more reasons to be bearish than bullish right now. Global growth is (almost) irrefutably slowing, and some of the geopolitical sore-points dictating sentiment, like Brexit and the US-China trade war, are showing little new signs of progress. A major factor keeping this rally alive in riskier assets, perhaps concerningly, is a little case of “fear of missing out”.
      • 0 replies
×