For those holding CFD positions over the weekend, how do you manage the funding rate accrual and the potential for significant weekend gaps, especially on commodities or less liquid equity CFDs? I've seen some considerable rate adjustments recently.
Good question. For me, it's about position sizing and setting wider stops if I absolutely have to hold over the weekend. Otherwise, I try to close out and re-enter Monday, even if it means missing a move.
The funding rates can definitely eat into profits, especially on longer holds. I find myself actively checking the swap rates on my broker's platform more often now and factoring that into my decision to close or hold.