Prices of Stocks are influenced by a multitude of factors like company performance, market sentiment, and economic indicators. Trading price movements of huge brands, using Contract for Difference (CFD) gives you access to popular company Stocks without having to buy them outright.
Within the fast-paced realm of the corporate Stock market, CFD trading is a powerful option. With CFDs you can speculate on the price changes without owning actual Stocks. And unlike cash equity Stock trading, you're able to potentially profit from market upswings and downturns alike.
As you venture into Stocks CFDs, it's imperative to approach it with a clear understanding of the risks and rewards involved. Leverage is a notable feature, allowing you to control larger positions with a smaller initial investment. While this magnifies potential profits, it's important to understand the associated risk of possible amplified losses. Risk mitigation is crucial.
CFD trading provides the flexibility to take both long (buy) and short (sell) positions on stocks, allowing traders to seize opportunities in both bullish and bearish markets. This adaptability is a key advantage in the ever-evolving Stocks trading landscape.
If you’re new to the stock market, the easiest way to begin is through an online trading platform. Many beginners choose a simple and reliable option - and that’s where Alpari comes in.
With Alpari, you can trade Stock CFDs on some of the world’s most popular companies without needing a traditional stockbroker or buying shares outright. Instead, you trade on price movements, whether the market is going up or down.
Many beginners choose Alpari because:
It’s simple to get started - all you need is a trading account and the Alpari platform.
You don’t need to own full shares, which keeps costs lower.
You can begin with smaller amounts, thanks to leverage.
You can trade rising and falling markets.
You can trade rising and falling markets.
For new traders looking for a flexible, straightforward way to enter the stock market, Alpari offers all the tools you need to start trading confidently.
When you trade cash or equity Stocks, you own the asset itself. Trading Stocks CFDs, on the other hand, allows you to speculate on price movements without ever owning the asset.
A key advantage of CFDs is that you can enter contracts for prices falling (going short), as well as rising (going long).
All trading comes with risk and CFD trading is no different. We strongly encourage you to take your time, do your research, and practice good risk management.
The Alpari Academy is a good place to start learning about trading with CFDs and we have excellent analysis tools that can help you balance risk with reward.
Leverage is like a loan of sorts, based on ratios. For example, if the leverage offered is 1:100, then for every $1 you put down as capital on your trade, we'll 'lend’ you $100.
This means that you have access to larger trade sizes without the capital outlay. Leverage is high risk, and you should be aware that while it can boost any potential profits exponentially, it can also increase losses.
Please don’t enter a CFD trade without understanding the potential financial risk.
Stocks CFDs are available on all Alpari trading accounts, but contract specifications in terms of spreads, lot sizes, swap values and leverage may differ from account to account, and instrument to instrument.
Typically, the higher-tiered accounts require larger deposits, but offer more favourable conditions.