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Trade Shares on MT5
What are Share CFDs?
Share trading is when you essentially buy a small part of the company and start speculating on if this particular share will rise or fall in price. Therefore it is recommended that you thoroughly research the company before you start share trading with CFDs.
A contract for difference is a derivative that allows a trader to participate in price movements without owning the underlying asset. With CFDs, traders can use leverage to increase their exposure, giving the trader flexibility to profit from rising and falling prices.
Share CFDs gives traders the opportunity to profit from the volatility of individual stocks as prices rise and fall with changing market sentiment and news events.
Trading Share CFDs vs. Index CFDs
An index reflects the average movements of all the stocks within an index, which can result in lower volatility.
Share CFDs reflect the price movements of individual shares which can be more volatile. While it’s rare for one news item to move an index more than a few percent, it is fairly common for a share price to move 5% or greater in a day.
Share CFD trading concentrates on a single company, while index CFD trading concentrates on overall market sentiment.