Shares, also known as stocks or equities, represent ownership in a company. When you buy a share of stock, you become a shareholder in that company, which means you have a small ownership stake in it. The value of your share can go up or down based on market conditions, as well as the performance of the company. You are paying the full value of the position upfront.

On the other hand, CFDs are leveraged whereas share trading is non-leveraged. CFD trading is the method of speculating on the underlying price of an asset, such as shares, indices, commodities, forex and more. A CFD – short for ‘contract for difference’ – is the type of derivative that enables you to trade the price movements of these financial markets with us. With this form of trading, you don’t own the underlying asset – you’re only getting exposure to its price movements.

Find out more about CFDS here.

If you have any further questions please do not hesitate to contact a member of our sales team at +44 2036953085 or by emailing us at uksales@xtb.com.

For any non UK clients, please visit https://www.xtb.com/int/why-xtb/contact, select the country you have registered with and contact a member of our staff.

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