TRADING CFDS ON SHARES
What is Shares trading?
Shares in a company are typically issued to raise capital at launch or for the planned expansion of a business and reflect proportionate ownership of a company or enterprise.
By buying Shares in a company, an investor legally owns a certain percentage of that company and may be eligible to exercise voting rights and receive a percentage of profits, called a dividend, from the company’s earnings.
Share trading is sometimes referred to as Equity trading, as the owner of Shares has direct equity in the company they have chosen to invest in.
When you trade Shares at SwissFutureFX, you are speculating on the underlying Share price movement rather than owning any shares yourself.
This means that you can trade on price movements using a Spread betting or CFD trading account and can open both Buy and Sell positions on stock for greater trading opportunities.
Share trading is a diverse, exciting market with plenty of trading opportunities across a wide variety of sectors. Share prices can be influenced by a number of market events such as:
- Mergers, acquisitions, take-overs, and special dividends – these events are largely grouped together as “Corporate actions”.
- Company news – for example, the launch of a new product, change in management, rebrands and big campaigns.
- Earnings – these are the earnings a company reports each year which gives the market insight into how profitable the business is and its health relative to competitors in the same space.
- Wider market events – these can include things like big news events concerning competitors, disruptions to supply chains, economic date, legislation changes, and trade tariffs.
There is a huge selection of sectors to choose from when you trade Shares, including heavily traded industries like mining, banking, tech, pharmaceuticals, retail, and telecommunications.
Whichever Shares you choose to trade, it is important that you have a strong knowledge of the industry you’re trading on and understand the issues that can move market prices.
Which Shares can I trade?
When you trade Shares at SwissFutureFX, you can choose from a wide range of companies from over 20 countries, including the UK, US, Germany, France, Spain, and Singapore.
You can trade any of our Shares markets as a CFD or Spread bet, allowing you to profit from both rising and falling markets. In addition, we offer markets on major IPOs (Initial Public Offerings) for even more exciting trading opportunities.
Can I use hedging as part of my portfolio?
If you currently have a Share portfolio or traditional investments that you’d like to offset a portion of your risk exposure in, using CFDs to hedge your portfolio can be a sound strategy.
Because you can Sell (go short) as well as Buy (go long) with a CFD trading account, you have greater flexibility when it comes to your investment.
Many traders who own a physical Share portfolio choose to hedge their investments with a CFD position as a way of minimizing risk and potential losses.
You can do this by opening a Sell CFD position in the Shares of the company you have invested directly in.
This trade in the opposite direction will help offset potential losses in your physical Share portfolio should their value decrease rapidly, for example, in times of extreme volatility or during periods of heightened uncertainty.
Is Shares trading for me?
Share trading offers investors huge trading and investment possibilities across a number of sectors. When you trade Shares with SwissFutureFX, you’ll have access to Equities from around the world and can choose from solid, blue-chip stocks to newer, more volatile markets. You will also have the option to trade on major IPOs when available.
Share trading could be right for you if you are looking for short, medium, and longer-term trading opportunities and have a good understanding of the Shares market.
You can trade Shares on our powerful, award-winning MetaTrader 4 Web platform.