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Share trading explained
Trading CFDs on shares
When investors trade shares in the form of CFDs (contract for difference), they are investing in the price of a share without actually owning it. This process is done online, via a trading platform provided by a CFD broker. Vestle, in case you were wondering, is a regulated and authorized CFD broker and we offer a cutting-edge, proprietary trading platform for web or mobile devices.
Vestle has hundreds of share CFDs from multiple markets and industries: Tech giants, automobile companies, fast food and beverage chains, banks, energy corporations and numerous others. To make it easier for you to find a specific share CFD on our trading platform, we divided the shares according to region: US, UK, Germany, Japan, etc. You can also choose to see the most popular shares (among traders in your region) or the shares that have increased or decreased most in price
Applying leverage when trading shares
Leverage is a popular trading tool used when trading CFDs. It increases your trading power, as well as risk, by allowing you to open large deals with a relatively small investment. Since Vestle is a regulated broker, we offer the maximum leverage rates allowed. Rates change according to the CFD instrument you choose to trade and for shares, maximum leverage is 5:1.
What does it mean? It means that for every pound you invest, you have 5 pounds in trading power. For example, with a £500 investment and 5:1 leverage, you will have £2,500 in trading power.
Sell or Buy?
Everyone knows that you can open a trade on shares when you think the price will increase, but what if you think price will decrease? Well, when you trade CFDs, you can open a deal even if you believe price will fall. This is called a Sell deal, but it’s also known as ‘going short’ or ‘short trading. Let’s say you want to trade Amazon shares in the form of CFDs. If you believe the price will increase, open a Buy deal (this is also called ‘going long’ or ‘long trading’). If you believe the price will decrease, open a Sell deal.
Opening a share deal with Vestle
- Select the share you want to trade
- Define the size of your deal
- Decide if you want to Buy or Sell
- Click ‘Deal’
We always recommend you apply Stop Loss and Take Profit orders. This will give you better control over your deals and will make it easier for you to manage multiple deals, face unusual volatility and control your open deals around the clock.
What factors can affect the price of shares?
There are many factors that are involved in the price of shares, and they are not all the same. US shares might be more sensitive to changes in the price of the USD than Russian shares and automobile shares are more likely to be sensitive to changes in oil price than tech shares.
That said, we’ve managed to compose a list of general factors that could impact the price of shares.
- Politics and geopolitics
- Interest rate decision
- Level of stability in global economy
- Taxation changes
- Earnings reports
- Technological/industrial changes
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