IQ Option overnight fee

If you actively bid using IQ Option, then you should definitely know about such thing as overnight fee. It is the percentage rate charged by the company from the client for transferring an open position on the following day. It is taken only while using leverage. The specified percentage is estimated based on the amount of the investment at the period of write-off.

2 types of overnights

  • Transfer of the position on the second day: the created transaction does not close at the end of a bidding session but remains until the next one. Hold back of a transaction may continue until the weekend.
  • Transfer positions through weekends/holidays: the deal remains open until the new bidding week or new bidding day after the holidays.

A position can be held for an arbitrarily long time and combine the 2 types of overnight presented above. For instance, a mid-term deal or an input in the long run.

 

 

Pros of overnight

The biggest plus while moving a trade to the next day is an eventualgap in a positive direction for an uncovered position. If the gap is great, then a very good profit is obtained from the opening of the market. In such cases, quite often, directional movement continues after gaps.

 

Circumstances when overnight is feasible:

  • If you already have accumulated profit, and the price is far from the initial entry point.
  • If you are widely diversified by instruments that do not correlate with each other.
  • Close before shifting a part of the entire position volume. However, the price is at a reasonable distance from the entry point.

 

 

Cons of shifting positions the next day

The main disadvantage of the overnight is the gap as well, but against the position. Daily gap can besignificant. Now imagine that the day before you bought it, and even with leverage, leaving the deal open till the next day. It is an error.

Overnight on non-bidding markets around the clock, this is always a casino, because at the time, when the markets are closed, anything can take place producing sweeping gaps at the opening of bidding.

Another shortcoming of transferring the position to the next day: stop orders may not function because of a gap. The price just skips the stop loss setting level. To do this, it is necessary to indicate a large slippage, which also carries additional costs if the request works.

And the last minus is the fee for moving the position through the night.

Nota bene!The risk of overnight becomes less with various tools used in dealsthan with transactions with correlating instruments.

It often happens that a bidding agent using an intraday bidding styleis eager to postpone the deal to the second day. It is recommended to think a hundred times and weigh all the risks that are described above before doing this. Hone your skills in your bidding style!

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