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ADby u/ananya_desai·4dQuestion

Struggling with CFD rollover costs on longer holds, am I missing something?

Hey everyone,

I've been dipping my toes into CFDs, mostly on indices like $DAX and $SPX500, trying to capture some of the longer swings. I understand the mechanics of CFDs – they're great for leverage and shorting, but I'm finding the overnight financing costs on trades held for more than a few days are starting to eat into my potential profits, sometimes even turning what would've been a decent move into a small loss if I exit at the wrong time. It feels like I'm constantly fighting the clock, which isn't the mindset I want for these trades.

Am I just misunderstanding the application here? Should CFDs purely be for intraday or very short-term swings, and longer positions be in outright futures or ETFs? Or are there strategies to mitigate these rollover costs for CFD trades that go for a week or two? Keen to hear how more experienced folks handle this, or if I should just adjust my expectations for CFD holding periods.

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