Swing trading
Swing trading is a style that holds positions for several days or weeks to participate in intermediate price movements. Positions commonly remain open overnight, exposing them to gaps, changing market conditions and, depending on the instrument, overnight financing charges.
In a hypothetical scenario, a trader holds a currency CFD from Monday until Thursday while following a price swing, with overnight financing affecting the final result.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure