For example, stock CFD trading does not give the investor the right to vote at shareholder meetings. The investor does not receive the actual asset and does not become its owner. Both contracts for difference and spread betting involve investing in the forecast. In essence, CFD trading and spread betting are quite similar: In spread betting, a trader bets on which direction the price will move. Difference between spread betting and CFD tradingĬFD trading allows you to earn on the difference between the buy and sell prices of the underlying asset.The article covers the following subjects: What is spread betting, can you make money on it, what is the difference from CFD trading - you will find answers to these and other questions in this review. But a wrong forecast can cost you the entire deposit.
This is not possible in CFD trading, even with leverage. Provided some risk management, the profitability of spread bets can be ten times higher than the amount of the bet. Compared to CFD trading, spread betting allows you to earn much more.
