Warning to deal4free users

jls483

Active member
173 0
If anybody has an account with deal4free and holds cash positions over night then I recommend you check your statement for Friday 3rd (arrived on Monday morning).

With a cash instrument there is a financing charge for every contract that you have for every day that is held. This is done by adjusting the opening price for the next day - for example GBPUSD is normally adjusted by .00011 every night and by .00033 over the weekend.

On my monday statement it was adjusted by .00099 - three times too much and I can't believe they singled me out for excessive charges and so I recommend you also check your statements.

This seems to be a common problem and happens whenever something strange happens like a weekend - maybe it relies on manual entry of overnight days rather than calculation by computer. Bank holidays are particularly high risk.

I'd be interested to hear if it has happened to anybody else.

John.
 

bonsai

Veteren member
4,106 11
financing charge is based on overnight interest rates.
they are volatile.

see your manual.
 

jls483

Active member
173 0
The financing charge for shares and indices is based upon SONIO or LIBOR (I can't remember which) and is volatile. The overnight financing charge for foreign exchange is based on something slightly different (related to the base rates in those currencies) and GBUSD has been .00011 every night for the past three months if not longer.

If it has changed to .00012 I would understand but being .00099 instead of .00033 does sound to me like somebody accidently keyed in 9 overnights instead of 3.

Other instruments went from .0006 to .0054 (again an exact multiple of 9).

John.
 

jls483

Active member
173 0
still looking it ...

In the past they have always corrected such mistakes.
 
 
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