Cost of carrying futures

[OddTrader]

No, it does not work this way. The margin requirement on the ES contract will not be lowered with your option "hedge".

Then, what's the carrying cost per day for options (on futures)? Is there any approximation for deriving a simple calculation?

 

[OddTrader]

The short answer is "No". You will not be charged any interest or any fees (beyond the commissions) by your broker.

The long answer is "Yes". The interest that you pay is implicitly in the price of the future, and it has to do with the so-called "cost of carry", which depends on multiple factors, such as remaining time to expiration and prevailing risk-free interest rate. The answer becomes even longer in case of commodity futures (such as oil, grains, metals, etc), where storage costs become part of the pricing equation, and the terms like "demurrage" and "contango" enter the picture.

How about any cost (price difference) of rollover from one futures to next?

 

[ross1985]

Don't understand why futures traders would choose IB, much better rates with good service to be had elsewhere.

Which brokerage do you recommend?

 

[algofy]

Which brokerage do you recommend?

For non newbie traders, AMP.

 

[cutetrader]

@Overnight @Robert Morse @algofy
we discussed IB will charge this fee only for FX, but IB charged me for ES position.

 

[Robert Morse]

Ouch

 

[algofy]

IB is insane with their weird fees.

 

[Handle123]

what is overnite position fee?

 

[nonlinear5]

what is overnite position fee?

I believe that the "overnight fee" is the same as the "carrying fee", and is applicable because the OP is using the tiered commission structure. From the following, it seems that there is no "overnight position fee" with the fixed commission structure:

"Our transparent Fixed pricing for futures in US markets includes our low broker commission plus exchange, regulatory and clearing fees. You are not charged a carrying fee for positions held overnight."

I've been using IB's fixed pricing forever, and never saw any kind of "overnight" or "carrying" fees.

 

[cutetrader]

I believe that the "overnight fee" is the same as the "carrying fee", and is applicable because the OP is using the tiered commission structure. From the following, it seems that there is no "overnight position fee" with the fixed commission structure:

"Our transparent Fixed pricing for futures in US markets includes our low broker commission plus exchange, regulatory and clearing fees. You are not charged a carrying fee for positions held overnight."

I've been using IB's fixed pricing forever, and never saw any kind of "overnight" or "carrying" fees.

Can you tell me how much is per contract cost for you for ES under fixed scheme?