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?
Holding CFDs long term on eToro
11 days later
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.
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.