SHARES
A CFD is a tradable contract between two parties, usually a buyer and a seller, to exchange the difference between the opening and closing prices of the contract, at the close of the contract. Based on this, a share CFD is a financial instrument which is linked to the underlying share price. The holder of a share CFD has no shareholder rights, because he is just speculating if the price will go up or down.
Benefits of Shares CFD Trading
One of the main benefits of trading Stocks CFDs is that you are not required to pay the
full underlying value of the contract, as a result of the ability to leverage your investments.
At OGFinance, you are simply required to deposit margin as collateral.
Share trading is a diversified market with plenty of trading opportunities across sectors.
Share prices are influenced by several events as:
1 Mergers, acquisitions, take-overs and special dividends – These events are largely grouped together as “Corporate actions”
2 Company news – The launch of a new product, rebrands etc.
3 Earnings – The earnings a company reports each year, which gives the market the idea of how powerful this company is.
4 Wider market events – These can include things like big news events concerning competitors, economic date.
