Stocks ETFs CFDs | SquaredFinancial

Stocks and ETFs CFDs

A stock, also known as a share or equity, is simply a divided-up unit of the value of a company. When a firm needs money, instead of borrowing, it can start a public offering (IPO) and sell shares (equity). If a company is worth €100 million, and 50 million shares are issued, each share is worth €2.

Why trade Stocks & ETFs CFDs

The main difference between stocks CFD trading and stock trading is that when you trade a CFD, you don’t own the asset or instrument you have chosen to trade, but you can still benefit if the market moves in your favour or lose should the market move against you.

  • Equities are part of most investment portfolios.

  • Shares and stocks are probably the most covered and highest profile asset classes.

  • For individual and professional traders, they offer a way of diversifying portfolios and can be used to hedge forex, fixed income or cryptocurrency exposure.

Contract details

North America

Exchange Commission charged Leverage Platform
NASDAQ
0.02 USD/share (min 2 USD)
1:5
MT5
New York Stock Exchange
0.02 USD/share (min 2 USD)
1:5
MT5
NYSE MKT
0.02 USD/share (min 2 USD)
1:5
MT5
Exchange Trading hours
NASDAQ
Mon-Fri 14:30-21:00 GMT
New York Stock Exchange
Mon-Fri 14:30-21:00 GMT
NYSE MKT
Mon-Fri 14:30-21:00 GMT

Can you go long or short?

If you buy a share in a company and hold it yourself, or through a nominee account, you are tied to the value you bought it at. However, you can buy a CFD based on an individual share and go long or short, as with any other CFD. For this reason, we offer you access to a full range of individual stock-based CFDs.

Single stocks or an index?

Shares can be traded on a single company (single stock) or through an index which tracks a number of companies listed on the same exchange. Single-stock shares may provide better returns especially if you have insights into the firm or the sector (automotive, pharma, technology, etc.) but can have a higher risk. An index will tend to be less volatile, as it tracks a number of firms from a range of sectors but will provide lower net gains or losses.

Dividends

If you hold an open long position on an equity contract that pays a dividend, you will be entitled to an amount equal to the amount based on the number of contracts you hold after the close of the business day, before the ex-dividend date.

Conversely, if you hold an open short position in an equity which pays a dividend, you will be required to pay an amount based on the number of contracts you hold after the close of the business day, before the ex-dividend date.

Earnings

Keep an eye on earnings. Upon an upcoming report or any other event of a company, margin requirements for shares and spot indices may be increased 5 business days prior to the said event and may remain in effect afterwards, at the company’s sole discretion.

During the affected period, new margin requirements apply for new and existing trades. Clients are fully responsible for monitoring the margin of their accounts as well as the free margin prior, during and after the affected period. As a result of the above, clients must understand and accept that this may result in their account(s) incurring a stop out. When trading Stocks CFDs or Indices CFDs, it is important to stay up-to-date with the earnings and dividends.

A wide range of products

Choose from different asset classes and trade all kinds of CFD markets.

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