ssukha

Hi there, I'm currently short on WTI oil with 6.5 x $1 contract at price of $90.55. Now October WTI oil contract was settled at 90.28 and November contract is $89.86. When I look at the IG example of how Daily financing adjustment on Oil contract works, I can't understand why I'm paying nearly $29 in daily financing adjustment instead of getting some amount credited in my account. I have shorted WTI earlier too with sometime P3 higher or lower than P2. But It seems that no matter whether P3 is higher or lower than P2, I always end up with debit instead of getting credit for daily financing adjustment. Can someone please help me understand how this works? Thanks

Thanks KoketsoIG

Hi Guys, I would like some clarity on the overnight funding costs (Daily Financing Adjustment) when shorting Oil. I have shorted Oil 17 times in last few months and have never received any credit ever. On the contrary, I have some amount debited from my account every time under Daily Financing Adjustment. I have also shorted Copper and Gold once each and have received credit both times. You’re short one A$10 contract on Oil – US Crude T2 – T1 = 31 days P2 price is 4700 P3 price is 4770 Basis = (4770 – 4700) ÷ 31 = A$2.258 IG charge = 4700 x 2.5% ÷ 365 = A$0.322 Adjustment = (1xA$10) x (A$2.258 - A$0.322) = A$19.36* A$19.36 will be credited to your account as you were short, and the next future contract was higher than the front contract. Examples as shown above on the IG website usually claim that your account is credited when shorting. I would appreciate your help in explaining why my account is debited instead of receiving credit. Thanks