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by u/zofia45·20dDiscussion

Comparing CFD Exposure to Direct Futures ($ES, etc.)

I'm still debating the merits of using CFDs for index exposure versus direct futures contracts, specifically $ES for the S&P 500. While CFDs offer fractional size and sometimes easier access, the funding costs and spread differences can accumulate. What's your threshold for switching from CFDs to futures based on position size or holding period?

2 comments · 16 points

2 Comments

u/salmamansour·19d

For me, it's less about the size and more about the holding period. Anything I anticipate holding for more than a few days, I'd rather take the direct futures route to avoid those overnight CFD financing charges.

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u/mller_sara·19d

I made the switch to direct futures ($ES_F) once my typical position size exceeded a mini-lot. The funding costs on CFDs really eat into profits on longer holds, and the liquidity in futures is just unmatched.

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