CFD Long Positions Swap - Interest

Hi,

It seems that over the Weekend the long positions swaps price tripled. Does this happen often? It became quite expensive for swing trading now…

For example, airbus was -0.011199 and is now -0.034726. Are there any announcements before they are changed?

Thanks

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Airbus is also capped at a max of 100 CFDs now. Same with Boeing.

Hmm will have a look at what other brokers are doing in this situation. I guess in this bull market they are trying to cut their losses. Even then, 3x/4x interest upgrade is quite expensive:/ will be forced to close a few positions. And without an announcement I’m worried it could jump higher all of a sudden damaging my profits…

Boeing was -0.028216 and is now - 0.088942… Massive…

Actually Boeing was capped at a maximum of 50, not 100. Not that I would ever buy that much. Just interesting to note during a time when airlines are rallying.

I can only compare it to other forex brokers and yes they have a higher swap during weekend. Forex spreads are set higher during the weekends, I guess you pay more. Therefor I try to close positions for CFDs before the weekend. A lot can happen in the world during the weekend what can affect the price.

Yours right, might be a weekend thing.

They didn’t increase just over the Weekend. I have been planning my positions for around 2 months now(on the red for a while) exactly for this(recovery) and price was always the same until now. I know they have it on their T&Cs that interest can change at any time but at least an announcement would be good since 4x is already quite a big increase imo

I have also kept a record of the long term positions swaps values incase they changed, and after this whole time they only changed this Weekend, when market is green.

Update: looks like its automatically calculated (increases - decreases) based on market conditions.

Most of the instruments i was trading are capped at 20 now. I shouldn’t have closed some positions but then overnight fees are also going up… :frowning:

Made an account just to respond to this thread. I left Trading212 because the overnight swap was nothing less than extortionate. The swap rate seems to be a function of on-platform demand as opposed to any real condition in the underlying market. Doesn’t really make sense that the swap varies at all either; it’s just a risk-free (because they can close your position whenever) loan from the broker.

Do yourself a favour and check out other CFD brokers. I had to go with one of the other popular ones because of the outrageous swaps on here. With the broker I’m now using, you see what percentage the swap is per day, and as far as I’ve seen it never changes.

Calculate your overnight swap as a yearly percentage. 2% is where it should be and anything over that is extortion.

Same at other brokers. All brokers I have experience with charge a swap rate.

@toppatopvt It’s an internal risk management decision. We prefer to charge higher rates but also allow higher leverage & not place any margin restrictions. For example, we don’t require more margin as you increase the trading quantity.

We understand there’s room for improvement & we’re committed to reducing the rates over time.

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@chantal All brokers charge a swap rate, but the actual rate varies (greatly) by broker it would appear.

@David Good to hear that you’re committed to reducing rates over time. In the meantime though, you’ve lost a customer to your major competitor. I’m now getting rates 1/7th of what it was on your platform.

Not convinced on your approach to risk management either. You’re arbitrarily modifying something (an interest rate) that in reality is pretty stable, and using that to control/offset your risk. This doesn’t work for me (probably others as well) for several reasons:

  1. I can’t enter a position on your platform because literally at any time you can say the rate is infinity and my account is wiped out overnight. Where are the checks and balances and guarantees on this?

  2. Whether I enter a position often depends on how long I can keep it open for, and with variable rates (with as much variability as yours) I have no insight into this and you make no guarantees.

  3. Already I’ve incurred a fair bit of capital gains tax, just by opening and closing positions unnecessarily to navigate your arbitrary swap changes. I incurred capital gains tax one last time to switch platform, but I made up for this in literally a couple weeks just from swap savings.

You’re the best app out there and I’ll keep checking back to see if anything changes, but until then you’ve made the arrangement untenable for me.