Holding CFDs long term on eToro

sky

Hi, I'm a newbie here and still trying to understand trading with eToro. My question is, do you advise holding CFDs for a long term period?

reigel

sky CFDs are only ideal for short-term trading and it's really risky for long-term investments. Just one huge drop of the asset's price and it can completely wipe out your account. But if you're really keen on long-term trading, then be sure to set a stop loss so you can manage the risks from the eToro app.

AteNTICI

For CFDs, it's not advisable to hold long term due to overnight/weekend fees (read about the eToro fees here). You may set a short-term plan like holding them for 3 days to 2 weeks maximum only or up to you (depending on the trend and/ on your own analysis). Don't forget to set your own stop-loss (trailing SL works better for me). Also, be careful in using higher leverages because it might burn your capital especially if you're new to this.