Understanding CFD Expiry and Rollover

When trading CFDs, especially on indices or commodities, it's crucial to understand that many have expiry dates. Unlike shares, which you can hold indefinitely, an index CFD might be based on a futures contract that expires monthly or quarterly. If you hold a position past this expiry, your broker will typically 'rollover' your position to the next contract, which can result in a small price adjustment reflecting the difference between the two contracts' prices. It's not a profit or loss from market movement, but simply the cost of moving to the next contract period, so always check the rollover terms.