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Fees on VIX trading

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Hi, i am trading on IG for a while now, mostly with indices or commodities. I have been recently experimenting with trading the Volitality Index and I am quite surprised about the commodity interest which seems horrendous. I understand that leverage is substantially lower for the Vola Index, which adds to my surprise. Eg for a position of GBP 2,500 per point I have been charged c. GBP100 per day.

That is not at all comparable with fees for indices or gold / silver (which have a much higher leverage).

Can someone explain how those daily fees are calculated? 

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20 hours ago, TheDudeLondon said:

Hi, i am trading on IG for a while now, mostly with indices or commodities. I have been recently experimenting with trading the Volitality Index and I am quite surprised about the commodity interest which seems horrendous. I understand that leverage is substantially lower for the Vola Index, which adds to my surprise. Eg for a position of GBP 2,500 per point I have been charged c. GBP100 per day.

That is not at all comparable with fees for indices or gold / silver (which have a much higher leverage).

Can someone explain how those daily fees are calculated? 

Hey @TheDudeLondon,

Thanks for your message. The VIX overnight funding is caluctated the same was as undated commodities. It's explained best on our website under The better way to trade commodities then go to 'Spread betting example'. 

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Let me know if you need additional clarification or if you'd prefer to speak with someone give us a call. However the figure you provided does seem right. The adjustment for the VIX that would have been taken this morning was 0.041071.. (0.041071 x £ per point) .

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