Stocks trading involves the trading of company shares and potentially profit from price movements without owning the underlying asset. Online stock trading with CFDs brings huge advantages for traders. CFD stock trading eliminates the restrictions associated with shorting, which usually require traditional stock traders to invest in the instrument before selling short, or there could be different margin requirements for short and long positions. Each share has a price usually determined by the supply and demand of the company’s shares in the market based on its current or predicted future performance. Traders can take long or short positions and take advantage of rising as well as falling share prices. Their price can be influenced by a number of factors such as company news, earnings and wider market events.

Advantages of stock trading

  • Trade long and short in bullish or bearish markets
  • Diversify your portfolio or hedge physical shares and ETFs
  • Increase market exposure with low margin requirements
  • Trade longer-term trends, company announcements and earnings reports
  • Create long/short portfolios or hedge market risk with ‘spread trades’
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