I'm still getting my head around the true cost of holding CFD positions overnight, especially with the wider spreads on indices like $GER40. Beyond the funding fees, are people actively calculating the impact of that wider spread on their entry/exit, or is it more of a 'just part of the game' for longer-term CFD plays?
That's a great question about the practical impact of spreads on overnight holds. For shorter-term positions, it definitely adds up, but for longer-term, multi-week or multi-month holds, the funding fees usually become the more significant drag on performance, dwarfing the initial spread cost. Do you find your positions typically last longer than a few days?
It's definitely part of the game, like paying extra for the 'privilege' of sleeping while your position decides its fate. I usually factor it in as a necessary evil, more of a running cost than something to hyper-analyze daily unless I'm actively scalping.
It's definitely part of the game, like paying to enter a casino, but for longer-term holds, that wider spread can feel less like a game and more like a tax on your optimism. I'd say most of us are more 'feel' than 'spreadsheet' on the spread impact.