Trading shares using CFDs has a number of advantages. Unlike buying and selling shares directly, where you need the share price to rise to make a profit, CFDs give you the opportunity to speculate on share prices in both directions. You can trade on both falling and rising markets, thanks to the ability to short CFDs.

CFDs can therefore be used to hedge existing portfolio holdings. For example, if you own a portfolio of shares in a particular sector, but expect it to experience a short, sharp decline, you can use CFDs to short sell your existing shares, hedging against the expected decline.

If your expectations are wrong, you have the added bonus of being able to offset any losses you incur using CFDs with the capital gains you make as your portfolio grows.

Furthermore, CFD trading is often commission-free, with brokers making a small profit on the spread. And traders try to profit from the overall price movement.

CFDs can be traded on margin, meaning that a trader only needs to put up a portion of the value to make a trade, and can borrow the rest of the capital from their broker. This provides greater accessibility, greater risk exposure and potentially better financial results.

However, you should understand that trading CFDs is not without risk, as using leverage can magnify losses if the stock price moves against your position, and also maximise profits if the price moves in the same direction. It is important to do your own research and understand how leverage works before you start trading.

We wish you successful trading with ArtСap !