Share Dealing Vs CFD Trading
The growth in CFD trading over the early part of the 20th century has been remarkable, taking it from an instrument of relative obscurity into one of the fastest growing investment markets on the planet. CFDs, or contracts for difference, represent an alternative path to trade shares, effectively indirectly taking positions in the share markets in a highly leveraged, margined path. While CFDs as derivatives have inherent risks in their trading, a complete consideration of how trading shares through CFDs compares to trading shares directly requires a gaze at both the risks and returns on offer to determine the best trading style for any particular transaction.
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