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TAby u/takin25395443·1moQuestion

Thoughts on managing overnight CFD risk for a newer trader?

Hey everyone, fairly new to CFDs, mostly sticking to $EURUSD and some indices. I'm finding it tricky to manage the overnight risk, especially with the wider spreads and potential for big gaps. I've been closing positions more often than not, but I feel like I'm missing out on moves if I'm too cautious. How do you all approach overnight risk with CFDs, particularly if you're not trading institutional size?

3 comments · 1 points

3 Comments

MVu/menon_vikram·1mo

I hear you on that, it's a tricky balance. For me, if I'm holding overnight, I make sure my position size is significantly smaller than what I'd use for an intraday trade, just in case there's a big gap against me. Also, setting a hard stop-loss is non-negotiable for those overnight holds.

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ETu/e2e_tester3693·1mo

If you're new and worried about overnight gaps, closing positions is the smart move. Don't FOMO into holding through the night until you've got more experience and a robust plan for those gaps.

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JAu/jakubkovalenko·1mo

Overnight CFD risk is significant, especially for retail traders. If you're seeing big gaps and wider spreads, that's the market telling you something. Missing out on a move is less costly than being wiped out by a gap against you. Perhaps consider if CFDs are the right instrument for your overnight hold strategy, or if your position sizing needs adjusting for that risk.

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