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Fib550

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About Fib550

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  1. While your here CharlotteIG, do you happen to know if being short Bitcoin on IG has ever incurred an overnight charge, or has it always been 'paid' to be short ?
  2. Great, thanks for confirming - its clear the its only charged on the profit 🙂 I went on your live chat last week and was told an entierly differant thing hence my mis-understanding but all sorted. Happy trading.
  3. Thanks to Caseynotes it looks cleared up, but it would be good for IG themselves to confirm it. The reason im asking is that I have had conflicting information from IG on live chat whereby they said its charged on the whole amount (not just the profit) both ways
  4. Hi, Can you confirm the amount the currency conversion fee is charged on? Is it charged on just the spread, profit/loss and overnight swap? Or is it charged on the total amount of the position, so if I am playing $1 per point and the price is $8000 that would mean a currency conversion charge of $40. And if this sentance is the correct one, then would the $40 be charged twice (for both opening and closing the position), and charged on profit/loss and swap ? It would be good if you could do an illustration for me with some numbers if possible, I would be shorting BTC at a price of $8000, $1 per point, and holding for 10 days. That would be really helpful! Many Thanks
  5. Thanks very much, glad I finally understand it. Any IG admins on here that can confirm the fx 0.5% charge is only on the spread, overnight funding and profit? In regards to the BTC GBP variant, my issue is as follows. I hold 1 Bitcoin on a crypto exchange and want to hedge it without selling it, hence where IG comes in. The BTC GBP variant follows BTC USD price exactly, so if I short 1 contract on IG then technically I am shorting more than 1 BTC USD contract as GBP is stronger than USD. So I can short 0.78 contracts which works out to $1 per point which is great and matches my 1 Bitcoin spot position, however when the GBP USD exchange rate changes up or down it will mean I am no longer shorting exactly 1 BTC..... I did a test a few days ago whereby I shorted 1 BTC USD (GBP variant) and 1 BTC USD on IG cfd. I chose 0.78 contracts on the GBP variant due to the exchange rate being 1.27 on the day I entered the position, which would match $1 per point. As you can see from the image p/l are not exactly the same due to the exchange rate changing to 1.30 today. As time goes on the rate will fluctuate even further from the inital rate hence not mirroring 1 spot btc usd.
  6. Appreciate the reply, really helpful. Apologies I linked to the wrong IG US site, I am in the UK and my account is in GBP. This exctract from the UK page where the fx charge is mentioned: https://www.ig.com/uk/charges So from your explanation of only the spread, overnight funding and profit/loss being charged the 0.5% fee makes this charge not really something to worry about as it will be so small that it will not really have any efffect on my trades. I can short the BTC USD as a 1:1 hedge for my spot bitcoin(opening a short of $1 per point per bitcoin im long in my spot position) and not have to worry about the exchange rate issues with the BTC USD(GBP) variant if I have understood it correctly. Please let me know if I have got the calculations correct: BTC USD price $8000 Short 1 contract which equals $1 per point GBP USD rate 1.27 Spread $38 FX fee per contract $38 * 0.5% = $0.19 Total spread fx fee x 2 (for opening and closing position) $0.38 Profit on position $1000 FX fee on position close $5 Swap charge 0.0556 ($8000 position size x 7 days) $31.14 FX fee on swap $0.16 Cheers 🙂 Page with details on spread and overnight swap for reference: https://www.ig.com/uk/help-and-support/spread-betting-and-cfds/fees-and-charges/what-are-igs-cryptocurrencies-cfd-product-details
  7. If I am trading BTC USD or the BTC GBP variant on a SB or CFD there is no currency conversion charge then. So what does the below screenshot mean then? https://www.ig.com/us/forex-trading-costs Thanks in advance.
  8. Thanks again for the reply. IG do have a BTC GBP product but it's hard to find, when you open the BTC USD product on the CFD or spread bet platform click the spot button then a BTC GBP product appears whereby the price is exactly the same as the BTC USD price.
  9. Thanks for the reply, I'm struggling to understand this. I'll try again with BTC USD, ignoring any spread or change in price from opening and closing the position : Price is $8000, I play $1 per point which is equal to a $1 move up or down, the rate is 1.27. Isn't my position size $8000? Currency conversion charge for opening the position : $8000 X 1.27 = $10,160, 0.5 % currency charge of $50.80/£40 Charge for closing the position $8000 ÷1.27 = £6299.21, 0.5% currency charge of £31.50
  10. Hi, I want to hedge a spot bitcoin long position using IG CFD, and I want to use the BTC GBP1 product as I dont want to pay the currency conversion fee due to my account being in GBP. I have the following questions: Is the BTC GBP1 product suitable for this purpose? Say I want to hedge 1 bitcoin, which is valued at 8000. So I take out a position size of 0.78 in the BTC GBP1 market due to the GBP USD exchange rate being 1.27. So now I am moving at 0.78 pence per dollar Bitcoin moves. However, with the GBP USD exchange rate constantly fluctuating, will this work? Will changes in the GBP USD exchange rate affect me being in a 1:1 position against BTC USD? I am really struggling to get my head around this. Any help is appreciated.
  11. Hi, I wanted to check if I understand the currency conversion fee properly. Example, I want to long the GBP USD, my account is in GBP. Position Size: £10,000 GBP Rate: 1.27 Purchase of USD: Amount of USD that would be bought without currency conversion fee: $12700 Amount of USD actually bought after 0.5% currency conversion fee: $12636.50 If the rate stayed the same at 1.27, here is what I would get back in GBP: USD Value: $12636.50 Amount of GBP that would be bought without currency conversion: £9950 Amount of GBP actually bought after 0.5% currency conversion fee £9900.25 So a round trip of currency conversion fee costs add up to £100, or 1% of the original £10,000 position. Do I understand this correctly?
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