Why Trade Stocks with CFDs?

Trading Stocks with CFDs allows you to trade long or short on a wide range of ASX and Global stocks with leverage.

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Trade Long or Short

Trade your view on the leading Australian, US, European and UK stocks by going long (buy) or short (sell).

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Trade Global Stocks

Trade major stocks around the world listed in places such as Australia, the EU, the UK and the US.

What is CFD Stock Trading?

CFD stock trading is different to traditional stock or share trading. Traditional share trading, put simply, is when you buy a share in a company in the hope that it rises in value and the company pays you dividends once or twice a year. CFD stock trading is different to traditional share trading in that you are not buying the underlying asset, but rather you are speculating on the price movement of a particular share – that is, you are betting on whether a share price will go up or down.

How do you Trade Stocks via a CFD Trading Platform?

If you believe that the price of a stock will rise in value, you can place a BUY trade with TD365 that reflects your trading view.  If the price rises in value, all other things being equal, you should make a profit on that trade. If the price of the stock goes down, your trade will be a losing one.

Example:

  • Qantas Airways Ltd (QAN) has a current share price of AUD $5.80. Having conducted your trading research, you believe that the price of Qantas is set to rise and so you place a BUY trade on Qantas at $5.80.
  • If the price rises, you will make a profit on every point movement that Qantas moves up and will make a loss for every point that the Qantas share price moves down.
  • 3 weeks later, the share price of Qantas is $6.25 – this represents a price increase of $0.45.
  • In this example, you would have made a profit.
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You can also trade on a falling stock price.

Using the same example above; if you think that the Qantas stock price will decline in value, you can open a SELL trade on our trading platform. If the stock price of Qantas does decline, you will make a profit (all else being equal).

Want to know more about trading share CFD’s?

Then you should check out our Secrets of CFD Trading section which includes a range of educational articles, including;