CFDs and Spread Betting are complex instruments, which involve high risks of losing all or partially your investment, as leverage changes drastically. 79% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. You should take into account whether you understand how CFDs and Spread Betting work and whether you can afford to risk losing money.

What is Stocks?

Trading stocks is one of the most interesting opportunities for traders worldwide to invest, as it opens a variety of industries, companies, and countries to select. The owner of Stocks holds the Stocks in the company they have chosen to invest in. It is a diverse process, the market offering many trading opportunities across a plethora of industries. Share prices can be influenced by many events on the financial market, including mergers, acquisitions, company news, earnings, and global market events.

Main Features of Stocks trading

Diversify your portfolio
Diversify your portfolio

Trading stocks is a good choice for those wanting to make their trading portfolio more attractive. It can be a safeguard if any one type of investment fails.

Make more money
Make more money

Some investors buy and sell stocks frequently, getting in when the stock price is low, and selling the shares as they rise, which brings a lot of income.

Enjoy transparency
Enjoy transparency

Stocks are the most transparent commodity types, including in terms of how they are standardized and in how their value is interpreted as well.

Discover its value
Discover its value

Shares have an underlying value, which is greater than their price. They have a value to buyers beyond their price point as being crucial for business ownership.

Trading Share CFDs vs. Index CFDs

An index reflects the average movements of all the stocks within an index, which can result in lower volatility.

Share CFDs reflect the price movements of individual shares which can be more volatile. While it’s rare for one news item to move an index more than a few percent, it is fairly common for a share price to move 5% or greater in a day.
Share CFD trading concentrates on a single company, while index CFD trading concentrates on overall market sentiment.

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  • Higher volatility
  • Often move over 5% when news is released
  • Influenced by company-specific news
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  • Access multiple indices with one trading account
  • Trade market action from around the world
  • Go long and short, and use leverage with small or large amounts of capital

FAQs

Shares Trading Hours
Commonwealth Bank (CBA) 10am – 4pm Sydney time
BHP Group Ltd (BHP) 10am – 4pm Sydney time
Westpac Banking Corp (WBC) 10am – 4pm Sydney time
CSL Ltd (CSL) 10am – 4pm Sydney time
Woolworths Group Ltd (WOW) 10am – 4pm Sydney time
Wesfarmers Ltd (WES) 10am – 4pm Sydney time
Telstra Corporation (TLS) 10am – 4pm Sydney time
National Aust. Bank (NAB) 10am – 4pm Sydney time
RIO Tinto Ltd (RIO) 10am – 4pm Sydney time
Advantages and Disadvantages of Trading Share CFDs

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.
How to calculate CFD margins?

When engaging in a Contract for Difference, you are only required to deposit a percentage of the contract’s full value. This is called a margin and it allows traders to open large positions while investing a fraction of the value. The margin is used as leverage, giving traders full exposure to the position. A margin is required before opening a position on your account. Your account should also hold extra funds to cover any potential losses and stop your account going into margin call. Always remember, leverage is a double-edged sword. While it can maximise your profits, it can also increase your losses.

Reasons to trade with OptiMarkets

Terrific quality<br />
and value for money
Terrific quality
and value for money

Make a good profit with our competitive
spreads, leverage up to 1:500, and no commissions.

Trade like you want<br />
with a lot of assets
Trade like you want
with a lot of assets

Open positions on Forex, CFDs,
indices, equities and so much more.

Everything<br />
you need is here
Everything
you need is here

Use the superb platforms, powerful tools and other means to reach your trading goal faster!

Rapidity<br />
and excellency
Rapidity
and excellency

Quick order execution and account opening, excellent trading chances, and customer support.

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