Volatility/indices futures

[topdog]

Hey everyone thanks for taking the time to read.

I have a question about the volatility indices cash contracts.

I want to know if there is roller cost at the end of the month on this product as there is on the Volatility futures contracts? 

[CharlotteIG]

3 hours ago, topdog said:

Hey everyone thanks for taking the time to read.

I have a question about the volatility indices cash contracts.

I want to know if there is roller cost at the end of the month on this product as there is on the Volatility futures contracts? 

Hey @topdog, thanks for your question. 

The cash market is priced using the forwards. They have a smaller spread but are subject to overnight funding. These cash contracts however do not have an expiry date.

Future contracts on the other hand have expiry dates which you can find in the get info sections. These are the underlying prices, they have a wider spread but no overnight funding. The cost is the spread you pay when we open the next contract. 

 

[Guest Hey @CharlotteIG]

Thanks for the info. So what effect does the overnight funding have on the cash contracts?

[topdog]

Thanks Charlotte,

Would you be able to tell me what the effect overnight funding will have on my contracts?

[Guest TSN]

On 21/01/2020 at 03:03, topdog said:

Thanks Charlotte,

Would you be able to tell me what the effect overnight funding will have on my contracts?

 

On 21/01/2020 at 03:01, Guest Hey @CharlotteIG said:

Thanks for the info. So what effect does the overnight funding have on the cash contracts?

Hi Charlotte,

could you explain how the overnight funding is calculated  for vol index. ?

lets say i am short  300  per point whats the overnight funding  cost.

i see i got charged  422 pounds for teh weekends funding which seems spectacularly high .

Thanks.

 

[CharlotteIG]

On 21/01/2020 at 03:01, Guest Hey @CharlotteIG said:

Thanks for the info. So what effect does the overnight funding have on the cash contracts?

 

On 21/01/2020 at 03:03, topdog said:

Thanks Charlotte,

Would you be able to tell me what the effect overnight funding will have on my contracts?

 

12 hours ago, Guest TSN said:

 

Hi Charlotte,

could you explain how the overnight funding is calculated  for vol index. ?

lets say i am short  300  per point whats the overnight funding  cost.

i see i got charged  422 pounds for teh weekends funding which seems spectacularly high .

Thanks.

 

Hey, 

The overnight funding for the VIX is calculated the same way as overnight funding. The best explanation is on our website which you can find by following the link below under commodities. Note, the rate last night was -0.469983 and 0.462142. Meaning if you were short you would have paid 0.469983 x bet size. If you were long you would have been credited 0.462142 x bet size. 

https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/why-is-overnight-funding-charged-and-how-is-it-calculated-

 

 

 

[Danius]

Hello all.

I have a question. I hold 9 points for US Crude which is not much.

My overnight charges went up from £18 last week to £87 last night and it keeps growing after every night. Just wonder if that's normal and what is based on as the formula in the last post does not make much sense to me to be honest? P2 - P3 not sure what is that and where can I find it to be able to calculate it myself to better plan for my positions?

Any help would be much appreciated.

Kindest Regards

Danius