What is the difference between CFDs trading and shares
to trade CFDs there is no possession of the securities, so there is not even the multiple paperwork and the costs that characterize a traditional equity investment, such as stamp taxes or Management costs.
Although CFDs are not securities that you are physically in possession of, you can trade them in a practical and fast way for profit only in the short term. Nonetheless, most CFD’s do not expire, so you are free to keep your position open as far as you want, but going to meet the costs of overnight, or the small percentage premiums that are up to the broker in exchange for the Maintenance of the position during the night (3 nights in the weekend).
It is important to highlight that CFDs are tools designed to obtain results in a short time, buying in a market to the upside or the downside, in order to profit from the changes to the upside or the downside of a title. Unlike actions, CFD positions can be closed even after a few minutes, with a simple click of the mouse.
Another big difference between CFD’s and equities is the leverage. CFDs are leveraged instruments, so for each individual operation, the user will not be exposed to the total amount of the shares that have been negotiated, but only for a small percentage.