Articolo

CFD vs Share Trading - Differences

LINK RAPIDO AL CONTENUTO
1. How Forex Trading Works with TMGM
2. How Profit is Calculated:
3. Opening the Position
4. Closing the Position
5. Why Trade Forex with TMGM?
6. Transparent Spreads
7. Major Currency Pairs
8. Explore more about Forex with TMGM

Shares denote a small piece of ownership in a company. Major corporations have millions of shares you can buy or sell on regulated markets. The price of shares rises and falls based on supply and demand and other factors, such as the company's financial performance, executive decisions or announcements, and macroeconomic factors.


CFD is short for contract for difference. It is a financial derivative meant to track an underlying market. CFD share trading involves contracts that track individual assets on stock markets.




Unlike shares, CFDs do not represent ownership of a company. Instead, they merely mimic the price movements of the underlying asset. You do not purchase a CFD. Instead, you agree to pay the difference between the price of the stock when you open the position and when you close it. The price difference is calculated in points, each with a specific value.


If you open a position while CFD shares are trading and the underlying stock goes up, the broker will pay you the value of the increase. However, you must pay the broker if the underlying shares go down.

Fai trading in modo più intelligente oggi

$10.000 Fondi Demo
Oltre 100 mercati
Commissioni basse, spread ridotti
Trading App
Unisciti a oltre 1.000.000 di clienti sulla nostra piattaforma di trading pluripremiata
1
Richiedi un
Conto Reale
2
Finanzia il tuo
Conto
3
Inizia a fare trading
Subito
Apri un conto