AddiH

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December 6, 2020
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December 7, 2020

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Overnight fees US stocks

AddiH posted a topic in New Client Trading Questions

Hello everybody, I have a question regarding overnight fees for buying stocks on margin. I'd like to know if I understood how much interest I need to pay if I hold a position overnight. I am interested in buying a US stock for let's say 50 000 USD. If the margin requirement is 40%, I put down 20 000 USD and borrow 30 000 USD from the broker (IG). My overnight fee in that case would be 30 000 USD x (2.5% + LiborUSD1Month(which is ~0.2%)) / 365 = 2.22 USD per day Personally I feel like that number is a bit too low, so I am wondering if somebody could confirm this calculation. Thank you very much for your help, very much appreciated.
- December 6, 2020
- 1 reply

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd and share dealing and stocks and shares ISA accounts provided by IG Trading and Investments Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957), IG Index Ltd (a company registered in England and Wales under number 01190902) and IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Index Ltd (Register number 114059) and IG Trading and Investments Ltd (Register number 944492) are authorised and regulated by the Financial Conduct Authority.

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