2
CFD Rollover for Indices - Best Practice?
For those actively trading index CFDs like $SPX or $NDX, what's your typical approach to rollover? Do you close positions pre-expiry and reopen, or let the broker handle the adjustment? I've seen some brokers with less than ideal spreads during rollover periods, leading to unexpected slippage.
5 comments · 2 points
I always close manually before expiry. The spreads some brokers offer for automatic rollover are just not worth it, and I'd rather control my entry.
Closing and reopening seems like a lot of extra work and potential for missed opportunities during volatile periods. Isn't the point of CFDs to avoid that kind of hassle? I've always just let it roll.
My strategy is to avoid holding through rollover altogether if possible. I'll typically close out any open positions a day or two before and re-evaluate for a fresh entry after the new contract begins.