CFDs on Stocks

CFD on Stocks trading allows investors to speculate on the future price movements of individual stocks without actually owning the shares. It's a contract between the trader and the broker based on the price difference from the trade's start to its conclusion.

In traditional stock trading, investors buy and own the actual shares of a company. With CFD on Stocks, you're trading a contract based on the price movement of the stock, not the actual shares.

CFD on Stocks trading offers several advantages:

• Ability to profit from both rising and falling stock prices.
• Leverage, allowing for potentially higher returns with a smaller capital outlay.
• No stamp duty or share registration since you don't own the actual shares.
• Access to global stock markets from a single platform.

While trading has its rewards, CFDs on Stocks are inherently risky. The application of leverage in CFDs can significantly enhance potential rewards but also magnify potential setbacks. Market shifts, gaps, trading commissions and slippage can also affect results. Stock prices are particularly sensitive, often fluctuating due to factors such as corporate announcements, earnings updates, and wide-ranging global events.

Leverage allows traders to control a larger position with a smaller capital outlay. For instance, with 1:5 leverage, you can control a position worth $5,000 with just $1,000. However, leverage can also amplify potential losses.

Yes, both MetaTrader 4 and MetaTrader 5 support CFD on Stocks trading. Each platform provides tools and features tailored to enhance your stock trading experience.

You can trade CFDs on a wide range of global stocks, from tech giants like Apple and Google to major financial institutions and energy companies.