Cost of carrying futures

Discussion in 'Retail Brokers' started by cutetrader, Jan 7, 2017.

  1. $2.04 per side, $4.08 round turn. I bet it's less expensive than using your tiered structure. If you traded in excess of 1,000 contracts per month, than tiered structure would probably make sense.
     
    #51     Jan 17, 2017
  2. Its the same

    upload_2017-1-17_17-9-44.png
     
    #52     Jan 17, 2017
  3. It does look the same. Call IB and ask them to confirm that the "overnight fee" only applies to the tiered commission structure. If so, switch to the fixed structure.
     
    #53     Jan 17, 2017
  4. Many futures brokers do not charge an "overnight fee" but they may charge a margin deficit fee if you do not have enough in your balance to carry the position overnight. You may want to call different brokers to see what their policy is.
     
    #54     Jan 18, 2017
  5. Adam777

    Adam777

    I'm still trying to understand what Advantage Futures means by:"Overnight Position Charge":
    http://www.advantagefutures.com/open-an-account/commissions/

    Is this just extra margin you need to allow for? ...or is it an actual 8% fee that you have to pay, so if you make 10% profit, then minus the 8% fee, then you only really make 2% profit for that year?
     
    #55     Jan 20, 2018
  6. Overnight

    Overnight

    I am guessing it goes something like this...

    Example: Exchange minimum margin requirement for your total position of 2 ES contracts =$10,000 (It's a bit less, just rounding here.)

    $10,000 x .08 = $800

    $800 over 365 days (annualized) = $.46 per day. (Charged at 5PM ET)

    Is $.46 per day excessive for 2 ES contracts? No. But does it really need to be charged in the first place? No. Alas, cost of doing business with some of these guys.
     
    #56     Jan 20, 2018
    Adam777 likes this.
  7. Robert Morse

    Robert Morse Sponsor

    We do not have a cost for overnight positions.
     
    #57     Jan 20, 2018
  8. Adam777

    Adam777

    Thanks. Yes I thought so.

    I really like @bone suggestion of using the 24 hour desk, where the broker looks after the stops and targets for long term spread trades. I'm not sure how his guys handle this fee, or if other brokers provide this service without the fee.
     
    #58     Jan 20, 2018
  9. Johnni.h

    Johnni.h