What is the difference between CFD trading and actual stock ownership?

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I see brokers offering CFDs on stocks. How is this different from buying actual shares?

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💡 2 Answers

Price Action Pro

Trader · 15 days ago

CFDs allow leverage and short selling easily, but you pay overnight financing charges. For long-term holding, always own the actual stock.

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Trading Wolf

Trader · 15 days ago

With CFDs you never own the underlying asset — you are trading price movement only. No dividends, no voting rights.

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