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Overnight fees US stocks
in New Client Trading Questions
Posted
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.