Purchasing a CFD of a stock is very similar to purchasing an asset stock, however, there’s a crucial underlying difference. A stock CFD is a contract between the broker and the client purchasing the stock declaring that the contract will mimic precisely the price of the actual underlying asset it is representing. Thus, when purchasing a stock CFD, the investor is technically purchasing a contract, and not the actual stock as an asset. There are several pros and cons between CFDs and assets however for more information you may refer to our ‘Guide’ section.
Stocks (CFDs)
