Why Trade CFDs on Stocks?
CFDs allow investors to trade the price movement of assets including ETFs, stock indices, and
commodity futures. CFDs provide investors with all of the benefits and risks of owning a
security without actually owning it. CFDs use leverage allowing investors to put up a small
percentage of the trade amount with a broker
When a trader opens a new CFD trade on stocks, the broker opens an identical trade in the
underlying stock, which acts as a hedge for the broker. For example, if the client has a
long EUR/USD or gold CFD position, the broker owns the corresponding short position, as well
as a long position in the stock.