RE: CHARTS -T LINE TIPS23 Dec 2019 15:17
Year-end increase to funding rates for FX pairs
Dear Mr. Rebello
We are currently seeing significant moves in the funding rates for most FX pairs. This is due to year-end market factors such as financial institutions balancing their books, which puts a strain on certain currencies.
We’ve observed the effect across the market, although some pairs are looking to be worse affected than others – most notably if you are short the US dollar.
What this means for you
Funding rates for FX pairs can be extremely volatile, resulting in your daily funding adjustments being much higher than normal. To the best of our knowledge this will affect:
• Most JPY crosses held past 10pm (UK time) on 26 December
• Most other pairs including gold and silver held past 10pm (UK time) on 27 December
• Positions on USD/CAD and USD/TRY held past 10pm (UK time) on 30 December
As an example, for a normal two-day rollover charge on EUR/USD you would receive 1.2pts for a short position and pay 1.26pts for a long position (+/- IG’s admin charge). Current rates are indicating receiving/paying six times these amounts if you hold your positions through year-end snapshot dates. Please be aware that these rates can change.
All things being equal, the FX tradable price should adjust to reflect these rates, but this is out of our control. The funding rates shown on the platform are indicative and subject to change.
We're here to help
If you have any questions about this or need assistance with your account, you can find answers in our help and support area or IG Community. Alternatively, our highly trained client services team is available by phone or email 24 hours a day from 8am Saturday to 10pm Friday.
Kind regards
IG
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In view off the above woill be closing aall eur/usdd open positions and probably wont trade it until the new year
6 x the rates ids aa joke
glita
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