How stock CFDs differ from owning shares
A stock CFD tracks the price of a listed share, but you never hold the share itself. That means no shareholder voting rights, and dividend treatment happens through cash adjustments to your position rather than actual dividend payments. Positions are leveraged, so both gains and losses are amplified relative to the margin posted, and holding positions overnight usually incurs financing charges. Short positions are possible where the broker supports them, but borrowing-related costs or restrictions can apply. Understanding these mechanics is the foundation for reading any broker's stock CFD terms critically.
- You gain price exposure only; there is no share ownership, voting rights or direct dividend entitlement.
- Overnight financing charges typically apply to leveraged stock CFD positions and compound over longer holds.
- Dividends and other corporate actions are handled as account adjustments, and the treatment can differ for long and short positions.


