Advantages and Disadvantages of Trading Share CFDs

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Benefits of trading CFDs

  • Individual shares can experience large price moves as companies fall in and out of favour.
  • CFDs allow traders to profit from rising and falling share prices and to use leverage to increase exposure.
  • Share CFDs can be used to trade pairs. A par trade comprises a long position in one stock and a short position in another stock.


Things to be aware of

  • Share prices can move quickly or gap when unexpected news hits the market.
  • As with any leveraged instrument, large losses can result from poor risk management.
  • When trading share CFDs, traders should keep up to date with company news.