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Cedric M

Can a CFD expire?


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Hello Cedric,
At an expiry date during a trade, your position in the market will spontaneously close. A trader will, therefore, make a decision on what they will do with their open position before the set expiration date. Depending on the tools they are using, they may decide to automatically close it or wait for it to expire.
Some financial products have an expiry date, while others lack the expiry date. CFDs, in particular, do not have the expiry date unless they are futures CFDs.
You get to trade CFDs on a margin; therefore, the cost that the underlying asset will incur is borrowed, and you will pay interest for it every day. Therefore you should not consider holding CFD for a long time.
However, since CFDs lack an expiry date, you can carry them for both long and short term periods as long as you are able to finance that position.
Therefore, even though CFDs do not expire, it is advisable you hold them for short term positions.

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