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Determining overnight charges


JulianG

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6 minutes ago, JulianG said:

IG documentation says that overnight charges are applicable to daily funded bets and cash CFD positions (https://www.ig.com/uk/charges). 

Is there any easy way of checking the charge, or the fee percentage when I'm placing the deal? The app and the web page show the margin requirement but it would be useful to have this too.

Thanks

 

Hi, one of the factors of the overnight interest fee on your leveraged trade is the end of day interest rate. There are estimations for FX majors (see link to guide below). 

Generally if holding a trade open for a week or less paying the overnight fee is more cost effective but for trades expected to stay open for long than a week then a futures or forwards contract (where available) is more cost effective as you don't pay the overnight fee but pay a larger spread instead.

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-

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