Stock CFD basics every reader should understand first
Stock CFDs let you speculate on share price movements without owning the underlying stock. Positions are opened on margin, so a small deposit controls a larger notional exposure, and losses can exceed your initial margin outlay in some account structures. Because there is no share ownership, you do not receive actual dividends or voting rights; instead, brokers typically apply cash adjustments when dividends occur. Holding leveraged positions overnight usually incurs financing charges, which makes stock CFDs more suited to shorter holding periods than long-term investing for many traders. These are general characteristics of the product type, not confirmed features of any Global Prime account.
- Margin trading means both gains and losses are magnified relative to the funds committed.
- Dividend adjustments and corporate actions are applied as account entries, not shareholder entitlements.
- Overnight financing costs accumulate daily and matter most for positions held over weeks.
- Execution model, spreads and commissions differ between brokers and between individual shares.


