Stock trading is a lot easier when you trade CFD stocks at AvaTrade
Before we get started with the specifics, it’s important to point out that when you trade stocks in a conventional sense, you’re buying into a company, in very small amounts. The more stocks you own, the greater your share in the company. Publicly traded stocks number in the thousands, and many stocks are being listed or delisted each and every day.
The value of a stock is dependent on a wide variety of factors, including the fundamentals of the company, socio-economic issues, geopolitical issues, inflation, unemployment, taxation, and a host of others. At any given time all of these factors are working together – often in opposite directions – to influence the price of the company’s stock. But perhaps the biggest drivers of stock prices are speculation and perception. The more people that believe a stock is likely to move up or down, the greater the likelihood that they will move the stock price in a particular direction.
Why CFD Stocks Trading is so much easier
When you trade CFD stocks like Google, Coca Cola, Apple or Barclays, you’re not buying shares in a company; you are agreeing to a contract (CFD) with the broker to settle the difference in value between the entry/exit prices of that particular stock. Prices are always moving up and down, but traders can always take advantage of these price fluctuations, even in a bearish market. To learn more, visit our short selling page.
Making a profit in a bearish market
Since you’re not taking possession of the tradable asset, there is leverage of up to 20:1, which means that for a small investment you can trade substantially larger stock volumes. It is important to understand though that CFD stock trading has an upside and a downside, and sensible trading practices are encouraged at all times.
The Trading Platform is Paramount
One of the most important aspects of trading stocks is the trading platform that you use. We feature several of the most powerful, innovative and robust trading platforms on the market. You’ll be able to make use of multiple graphs, management functions and other features to enhance your overall trading experience. Plus, you’ll be able to see your stock portfolio, alongside your indices, forex, and commodities portfolio.
We regularly update our traders with the latest news, educational resources and market commentary to keep you well informed about the hottest trends, movements and news from the world of stocks trading.