US Oil Overnight Charges

Dec 4, 2009
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#1
Hi all,

Ages since I posted here. Unsure, if this is the right forum, if not, please let me know where to post (Commodities?).

I am based in the UK and have been holding two short WTI/USOil positions - and since Jun 21, I noticed that the overnight holding interest-rate/swap has gone up from around £2/night to £17 last night. That does seem like a substantial increase. I have been in touch with the broker and after quite a bit of back and forth I still don't completely agree with what they are trying to convince me of, which is around the price of the futures contracts decreasing substantially.

So just wanted to confirm if something changed in the past 3 weeks please?

Thanks.
 

hatemypips

Active member
Nov 11, 2014
226
2
28
#2
Hi all,

Ages since I posted here. Unsure, if this is the right forum, if not, please let me know where to post (Commodities?).

I am based in the UK and have been holding two short WTI/USOil positions - and since Jun 21, I noticed that the overnight holding interest-rate/swap has gone up from around £2/night to £17 last night. That does seem like a substantial increase. I have been in touch with the broker and after quite a bit of back and forth I still don't completely agree with what they are trying to convince me of, which is around the price of the futures contracts decreasing substantially.

So just wanted to confirm if something changed in the past 3 weeks please?

Thanks.
Can you share with this their explanation. Swaps didn't charge on my trading platforms (Tickmill and Нotforex), quick research shows other brokers didn't change it too.
 
Dec 4, 2009
32
0
16
#3
Hi again.

Thanks for responding, apologies, I was traveling and could not respond earlier. They pointed out (after 6/7 emails) that its based on the following:

(price of next future - price of front future) / (expiry date of the front future - expiry date of the previous front future)

Does it really make sense? Is this standard?