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ETF/CFD Newbie Help!


aelv

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Hi All,

Apologies I'm totally new so apologies for the basics.  I've recently invested decent sums via my CFD account into lots of ETF products.  I've seen a really solid profit to date but have heard that for long term holding CFD is not great for ETF if you're not looking to day trade. 

My question is - should I cash out and look to buy ETF via shares rather than CFD if I'm looking at a long term investment as opposed to short term fast gains? 

Thanks

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7 hours ago, aelv said:

Hi All,

Apologies I'm totally new so apologies for the basics.  I've recently invested decent sums via my CFD account into lots of ETF products.  I've seen a really solid profit to date but have heard that for long term holding CFD is not great for ETF if you're not looking to day trade. 

My question is - should I cash out and look to buy ETF via shares rather than CFD if I'm looking at a long term investment as opposed to short term fast gains? 

Thanks

Hi @aelv, if you are confident in your risk management and stop loss positioning there is no reason why you shouldn't use cfd's for long term trades but be aware that (where available) it is more cost effective to use the 'Forward' (futures) contract for longer term trades rather than the DFB spot contract as the forward contract doesn't incur overnight funding costs though you do repay the spread at each 3 monthly rollover.

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