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IB accrued interest
- Thread starter gwac
- Start date
Quote from TRADERguy:
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Quote from siki13:
Would be possible to bypass negative net interest if i close
position on 1655 EST and the reenter on 1705 ?
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Except you cannot reenter at 17:05 because IdealPro is closed from 17:00 til 17:30.
Good answer, LOL...
Quote from gwac:
Any positions I do overnight, I will not do with IB. Postions
that should earn overnight, end up costing with their
BS way of calculating interest.
I understand that, but why trading with IB? In volatile times you get no fills or unsatisfying fills, long term trading is as well not recommended due to their high rollover/interest rates.
The only positive thing is their so called ecn-type setup and they don´t trade against you fishing s/ls (don´t they?) But i did not experienced this with other brokers, so called bucket shops.
The only reason I trade with them is they are a broker
and my money is insured.
The fills are good, i have no issue.
The only problem I have is the BS way they calculate
the overnight interest. It`s a money grab for them.
Until they become more competive about this issue, i will
stay away from opening positions with them which I know
are going to be kept overnight.
You can fool some of the people but not the ones who know
how things really work. Futures are the best for any
position that is going to be kept overnight.
and my money is insured.
The fills are good, i have no issue.
The only problem I have is the BS way they calculate
the overnight interest. It`s a money grab for them.
Until they become more competive about this issue, i will
stay away from opening positions with them which I know
are going to be kept overnight.
You can fool some of the people but not the ones who know
how things really work. Futures are the best for any
position that is going to be kept overnight.
Quote from ballyhoo:
I understand that, but why trading with IB? In volatile times you get no fills or unsatisfying fills, long term trading is as well not recommended due to their high rollover/interest rates.
The only positive thing is their so called ecn-type setup and they don´t trade against you fishing s/ls (don´t they?) But i did not experienced this with other brokers, so called bucket shops.
Quote from TRADERguy:
--------------------------------------------------------------------------------
Quote from siki13:
Would be possible to bypass negative net interest if i close
position on 1655 EST and the reenter on 1705 ?
--------------------------------------------------------------------------------
Except you cannot reenter at 17:05 because IdealPro is closed from 17:00 til 17:30.
IDEALPRO reopens at 17:15 EST. This changed sometime in May. The website was just not updated.
Quote from IBj:
The trades you do on Monday only settle on Wednesday (for most FX pairs). Since you neither pay nor receive funds for Monday trades until Wednesday, they will have no bearing on the Monday (or Tuesday) night balances for purposes of interest. There is an explanation on settlement day principles on the link I cited.
Example:
monday AM: acct has 100K USD
monday: sell 100K USD, buy 83K EUR
Monday closing *settled* balance = 100K USD, 0K EUR. You will earn interest on your USD.
Wednesday: monday trade settles, balances are: 0K USD, 83K EUR
Wednesday close: interest will be credited for 83K EUR
As far as I know, it is wrong. There is 1 day lag on the interest received in accounting statement. So you can only see the interest on Thursday, not Wednesday.
If one is trading well with a leveraged instrument like futures or forex then why is interest a big deal
(or any deal)?
(or any deal)?