How Long Can You Hold a CFD Position?
Contracts for differences (CFDs) have become a common way to trade for retail traders. But can you hold a CFD position for a long time?
Updated April 15, 2024.
Many newcomers in the investment world, or even seasoned investors who are trying to diversify their options, have many questions about CFDs—and a common inquiry is how long you can hold a CFD position, be it in gold or stock.
Do CFDs Have Expiry Dates?
CFDs do not have any expiry dates because you are paying an "interest" charge on your positions. You will not be forced to pay a premium like you would in futures contracts, which do expire. Therefore, you can hold long or short positions in your CFD trading strategy. Since CFD trading consists of essentially speculating on the price movement of an underlying asset (you never own or take ownership of this asset), you can trade the security for a single session or for more than a year.
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Long- vs. Short-Term CFD Trading
Long-term investing is perhaps a far more successful strategy than holding short-term positions. You do not need to worry about volatility and rapid price movements in either direction. That said, maintaining a long CFD position will become more expensive as the trading sessions go by, something that you will not face with a short-term trade. Ultimately, it is up to you and your investment goals and tactics when deciding what path to chart.
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT buy/sell ownership of the instrument itself
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