Negative interest rate (IB)

[Redsails]

Sorry for the stupid question, but I need some urgent help.

I am a total novice. So, I have had a long position in EUR (200,000) overnight and got a message from IB that I will be charged a negative interest rate, which something like 1% or more.

What does it mean? Does it mean I will be charged 2,000 EUR??

If yes, that will be the stupidest way I have lost money so far (my equity is $15,000).

 

[AbbotAle]

1% will be annualised other wise they'd be in jail for running a shylock business.

1%/365 = 0.0027% daily

 

[luisHK]

it's 0.588% per year, also you are charged only after the first 100k euro.
It's still rough and had me sell most of the euros in IB account, which leaves me with a bit less euro than i'd wished (but I'm bearish eurusd for the next year)

https://www.interactivebrokers.com/en/index.php?f=1595

 

[luisHK]

BTW it sounds like you have a forex position on, if that's the case you will be also charged on the other currency's negative balance, more than for the euro.
IB has an unusual way to account for forex positions.