The so-called extension fee, also called overnight fee, is usually charged after holding the position for more than one day. There are many kinds of transactions in the market now, some need deferred fees, and some don't, so is there a deferred fee for paper and silver transactions in banks?

Is there an extension fee for paper and silver?

There is no extension fee for paper and silver. Deferred fee is the fee charged for delayed delivery of varieties. The common varieties that charge extension fees are gold T+D and silver T+D of Shanghai Gold Exchange. TD means delayed delivery, and the aforementioned varieties can be delayed indefinitely. Therefore, delay compensation mechanism (delay fee) is introduced to balance the contradiction between supply and demand.

Deferred charges are not fixed, sometimes they are overpaid, sometimes they are overpaid. When the declared amount of delivery is less than the declared amount of receipt, the short seller pays the extension fee to the long seller; When the declared delivery quantity is greater than the declared receipt quantity, the bulls pay the extension fee to the bears; When the declared delivery quantity is equal to the declared receipt quantity, there will be no deferred payment.

In fact, some large banks also own paper and silver TD. Compared with paper and silver, the biggest difference between silver TD and it is not the deferred fee, but the leverage mechanism. The leverage ratio of major correspondent banks in silver TD is generally 5 to 14 times, and the risk of investing in silver TD is similar to that of investing in futures.