How long can I hold a CFD for?

You can hold a CFD for as long as your broker allows, provided your account maintains sufficient margin to support the position. Most CFDs do not have a fixed expiry date.

One factor that may affect how practical it is to hold a position for an extended period is overnight financing. For positions subject to overnight financing, charges typically accrue for each day the position remains open. As a result, holding costs can increase over time and impact the overall profitability of a trade.

For example, if you open a long CFD on 100 shares at $50, this gives you $5,000 in market exposure, and the overnight financing rate is 7% per annum. The daily holding cost would be approximately $0.96 ($5,000 x 7% / 365). Holding the position for 30 days would add around $29 in financing charges. Holding it for 90 days would add about $86. If the share price rises by 2% over those 90 days, the $100 gain would be almost entirely offset by financing costs.

This example is provided for illustrative purposes only. Actual financing rates and charges vary depending on the broker, product, market conditions, and jurisdiction. Traders should consider all applicable costs when assessing whether to hold a CFD position over a longer period.