How long can I hold a CFD for?

You can hold a CFD for as long as your broker allows, provided your account keeps enough margin to support the position. Most CFDs have no fixed expiry date.

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

For example, you open a long CFD on 100 shares at $50, giving you $5,000 of market exposure, and the overnight financing rate is 7% per year. The daily holding cost works out to roughly $0.96 ($5,000 x 7% / 365). Holding for 30 days adds around $29 in financing. Holding for 90 days adds about $86. If the share price rises 2% over those 90 days, the $100 gain is almost entirely offset by financing.

This example is for illustrative purposes only. Actual financing rates and charges vary by broker, product, market conditions, and jurisdiction. Traders should consider all applicable costs when evaluating whether to hold a CFD position over an extended period.