Interactive Brokers has expanded its overnight trading offering to include Contracts for Difference (CFDs) on US stocks and ETFs.
In addition to US Stocks, ETFs, and Index Options, this expansion allows clients to trade CFDs on US equities around the clock, five days a week, powered by Blue Ocean Technologies.
CFDs on 3,500+ US stocks and ETFs
Clients can now trade CFDs on over 3,500 US stocks and ETFs during overnight trading hours, from 8:00 pm to 3:50 am ET, Sunday to Friday. This enables traders across the globe to react to news and market events in real-time, regardless of their local time zone.
CFDs provide an alternative to traditional stock trading with margin, offering leveraged exposure to the US equity market without owning the underlying asset. With lower margin requirements and no borrowing costs, traders can manage risk more effectively and optimize capital efficiency.
“Our clients can now use the leverage of CFDs in overnight trading hours”
Milan Galik, Chief Executive Officer of Interactive Brokers, said: “With the growing popularity and increase in overnight trading volumes, expanding our offerings to include CFDs on US equities is a strategic enhancement.
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“Our clients can now use the leverage of CFDs in overnight trading hours, enabling them to respond swiftly to market movements and optimize their trading strategies at any time, day or night. This added flexibility ensures our clients can capitalize on global investment opportunities.”
IBKR provides automated trade execution and custody of securities, commodities, and foreign exchange around the clock on over 150 markets in numerous countries and currencies from a single unified platform to clients worldwide.
The brokerage firm serves individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers.
IBKR launched ForecastEx
Earlier this month, ForecastEx, a CFTC-regulated subsidiary of Interactive Brokers, went live with its Forecast Contracts on upcoming economic data releases and climate indicators.
Forecast Contracts through ForecastEx facilitate a unique trading approach, allowing investors to hedge against or express conviction on the outcome of key economic and climatic events.
The contracts provide a direct method for investors to protect their portfolios from volatility related to economic indicators or climate patterns. They are especially relevant for those invested in cyclical stocks and sectors like industrials, consumer discretionary, and real estate, which are highly sensitive to economic fluctuations.
How ForecastEx works:
- If an investor believes an event will occur, such as an increase in the US Consumer Price Index above a specific value, they can buy a “yes” contract. Conversely, if they think the event will not happen, they can purchase a “no” contract. Contract purchase prices range from $0.02 and $0.99.
- The value of these contracts will continue to fluctuate based on market participants’ evolving judgment of probabilities, directly reflecting the collective market view of the likelihood of the event.
- Upon the event’s resolution (e.g., when the US Bureau of Labor Statistics announces the CPI), the contract settles at a predefined value — $1 for a correct answer and $0 for an incorrect one.
ForecastEx contracts have weekly, monthly, quarterly, and annual durations. Interactive Brokers will pay interest at 0.5% under the prevailing Fed Funds rate on the closing market value of positions. Income interest accrues daily and is paid monthly, currently at a rate of 4.83% APR.
