Shares

When you choose to trade a CFD on Amazon, let’s say, you don’t own an Amazon share, but you are speculating on the price movement of the share.  If your trade goes well, then your profit will be the difference between the open price of the trade and the close price, excluding the spread, which is what the broker will take as a fee. Unlike the traditional stock market, CFD trading gives you room for more flexibility.

One of the key reasons is that with CFDs you can take advantage of price movements in both rising and falling markets which means you can open a Sell position or a Buy position, allowing you to profit by buying low and selling higher.

Because you aren’t buying the underlying asset, you can trade with leverage, which is like borrowing money. Leverage allows you to control a bigger position by using a smaller amount of your own money. While you can increase profits since you are trading with more funds, you can also incur bigger losses, so you will need to be careful and manage your risk.