If you hold a short-term trade and want to keep it open overnight, you’ll be charged a daily interest fee. This charge will be applied to cash CFD positions held through the daily cut off time.
The daily cut off time is 10pm UK time. However this may vary for international markets.*
*For US Shares, the cut off time will be 8pm (New York Time) Monday to Thursday and 10pm (UK time) on Friday
Note, futures and forwards don’t incur overnight funding charges, but they do have wider spreads. These contracts are typically used for longer-term trades.
Why is overnight funding charged?
When trading a CFD, you’re using leverage. This means you are effectively being lent the money required to open your position, outside the initial deposit you’ve paid. To keep your position open after the daily cut off time an interest adjustment will be made to your account to reflect the cost of funding your position overnight, plus a small admin fee.
How can I see what I've been charged?
Overnight funding charges appear as separate transactions on your account and won’t affect your running profit/loss. A statement which contains all trades and associated charges is automatically sent to your registered email address at the end of each day.
How is overnight funding calculated for each market?
Indices
Indices
For each day that a cash CFD position is open on a stock index, adjustments are calculated to reflect the effect of interest and dividends (if applicable).Cost currency is determined by the currency of the underlying asset for CFDs.Interest rate benchmark is calculated according to the currency of the underlying instrument.IG publishes weekly interest rates used to calculate the overnight funding rates (per annum) for Indices. You can find them here.Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend.
Formula:
Number of contracts x value per contract x price x (3% admin fee+/-SOFR%*) ÷ 360
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* Price = price at 10pm (UK time) + if long – if short |
Example:
You’re short two contracts on the US Tech 100
*We use SOFR rate and the 360-day divisor since you're trading the US index in USD |
Shares & ETFs
Shares & ETFs
Cost currency is determined by the currency of the underlying asset for CFDs.Interest rate benchmark is calculated according to the currency of the underlying instrument.IG publishes weekly interest rates used to calculate the overnight funding rates (per annum) for Shares, and ETFs. You can find them here.Borrow charge: When you are shorting a stock via cash CFD, you will incur a borrow charge. The borrow charge will be accounted for in a daily cash adjustment applied to your account. The charge varies according to the stock, is notified to us by our brokers or agents and includes a 0.5% administration fee. The borrow charge, and the ability to hold a short position, can be changed at short notice. To determine whether a borrow charge applies and if so, what the charge is, call our dealers in advance of trading.Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend.
Formula:
Number of contracts x value per contract x price x (3%+/-SOFR%*) ÷ 360
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* Price = price at 10pm (UK time) + if long – if short |
Example:
You’re long 1500 contracts on Tesla Inc |
Forex
Forex
For forex and spot metals deals, we charge the tom-next rate plus an admin fee of 0.8%.What is the tom-next rate? Find out more here.Please note that forex positions held through Wednesday 10pm (UK time) will incur three days’ worth of funding to cover the settlement of trades over the weekend. This is because FX settles on a T+2 basis. Therefore, when a position is held through Wednesday 10pm (UK time) it’s effectively being held through the weekend as positions can’t be settled until after Friday 10 pm (UK time). Subsequently, holding through Friday will only incur one day’s worth of funding.
The easiest way to work out overnight funding costs on FX pairs is to look up the swap rate on our platform.
Formula: Long:
Example: You’re long one AUD/USD $10 contract
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What is the base calculation for FX funding?
Formula:
There are three steps to this formula:
1. Value Price in points x 0.3% (0.8% for mini contracts) ÷ 360
2. Swap rate
When going short:
When going long:
3. Cost Number of contracts x value of contract x swap rate
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Example:
You’re short one EUR/USD standard lot
*This is a credit since the bid interest rate is lower than the offer rate and you are holding a short position. |
Commodities
Commodities
Prices for commodity cash CFDs are synthetically created using the two most liquid futures contracts. This will result in a natural movement between these two contract prices and will be included in overnight funding adjustments. You’ll then either be debited or credited depending if you’re long or short, and whether the next future contract price is higher or lower.To find out more on how we price our commodities, please click here.Commodity funding is based on the market cost of carry, plus an admin fee of 3% per annum.Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend.
Formula:
There are three steps to this formula:
1. Basis (the daily movement along the futures curve) (P3 – P2) ÷ (T2 – T1) T1 = expiry date of the previous front future
2. IG charge Price x 3% ÷ 365
3. Adjustment (Number of contracts x value per contract) x (basis + IG charge)
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Example:
You’re short one $10 contract on Oil – US Crude
*$18.72 will be credited to your account as you were short, and the next future contract was higher than the front contract. |
Cryptocurrencies
Cryptocurrencies
Overnight funding on cryptocurrency CFD positions is calculated using an averaged market rate, adjusted by IG's administration charge. This means your funding costs will move with market conditions rather than being fixed.
Funding is applied to any position open at 10pm (London time), Monday to Sunday.
How your funding rate is calculated
Your daily funding charge or credit is calculated as:
A = V × R
Where: A = the funding adjustment (charge or credit) V = number of contracts × contract size × price R = the current averaged market rate, inclusive of IG's administration charge
Funding rates are quoted on a bid/ask basis. The ask rate applies to long positions; the bid rate applies to short positions. Depending on prevailing market conditions, either rate may result in a debit or a credit to your account.
Example overnight funding rates (% per annum)
Cryptocurrency | Short (Bid) | Long (ask) |
Bitcoin | -4% | -16% |
Ethereum | -4.5% | -15.5% |
Solana / XRP | -8% | -17% |
All other cryptocurrencies | -7% | -16.5% |
A negative rate results in a debit to your account. A positive rate results in a credit to your account.
Rates are reviewed frequently and updated to reflect current market conditions. The latest rates are available on the web platform on the swap bid / swap ask section
Worked examples (illustrative — assuming Bitcoin at $80,000)
Long 1 Bitcoin contract: (1 × $80,000) × (16% ÷ 360) = $35.55 debit per day
Short 1 Bitcoin contract: (1 × $80,000) × (4% ÷ 360) = $8.88 debit per day
Other markets
Other markets
Overnight funding for the following instruments is calculated in the same way as for commodities without fixed expiries:EU Volatility Index, French OAT, German Bobl/Bund/Buxl/Schatz, Italian BTP, Japanese Government Bond, UK Long Gilt, US 2-Year/5-Year/10-Year T-Note, US Dollar Basket, US Treasury Bond, US Ultra Treasury Bond, Volatility Index.Prices on these markets for cash CFDs are synthetically created using the two most liquid futures contracts. This will result in a natural movement between these two contract prices and will be included in overnight funding adjustments. You’ll then either be debited or credited depending if you’re long or short, and whether the next future contract price is higher or lower.Funding is based on the market cost of carry, plus an admin fee of 3% per annum.Please note that open positions held through 10pm (UK time) on Fridays will be adjusted for three days’ worth of funding to cover the weekend.
Formula:
There are three steps to this formula: (P3 – P2) ÷ (T2 – T1) T1 = expiry date of the previous front future Price x 3% ÷ 360/365 (Number of contracts x value per contract) x (basis + IG charge)
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365-day divisor used for the FTSE 100 and other GBP, SGD and ZAR denominated markets. This divisor will also be applied to all commodities denominated in CNH. |
Example:
You’re short 100 contracts on the Volatility Index
*$2.9 will be credited to your account as you were short, and the next future contract was higher than the front contract. |