Exness Stocks CFD Trading

Exness provides you with the ability to trade stocks through CFDs (Contracts for Difference), where you can bet on the price movements of stocks without taking ownership of the stocks. This is a flexible way of trading, where you can earn money from both a rising and a falling stock price. Exness provides access to a wide variety of global stocks at low spreads, competitive margins, and the option of trading through popular platforms such as MetaTrader 4 and MetaTrader 5.

Trading Stocks via CFDs on Exness: how does it work?

Trading stocks in CFDs on Exness allows you to buy and sell stock contracts based on their price movements. You are not required to own the stock physically; you simply take a view on whether the price will go up or down. Exness gives you access to stocks in various industries, including technology, energy, and finance. You can trade on leverage, i.e., you can manage larger positions with smaller amounts of capital.

What Stocks are Available for Trading on Exness?

Exness CFD trading allows you to purchase and sell stocks without necessarily owning them. Rather, you enter into an agreement with Exness to exchange the difference between the stock price at the point of opening and closing the position. This strategy allows you to gain from an increase and decline in the price of the stock.

You can sell or purchase stock CFDs on Exness according to the market condition. If you expect the price to go up, you go long (buy). If you expect the price to go down, you go short (sell). Trading with CFDs also enables you to use leverage to trade larger positions with lesser capital, which increases your potential returns (and losses).

The Main Advantages of Trading CFDs on Stocks with Exness

Exness offers a variety of stocks from the largest markets around the world, including the US, UK, and Europe. Famous stocks available for trading using CFDs are Apple, Tesla, Amazon, Microsoft, and many more. Exness keeps updating its stock list to allow users to trade in top companies in different industries.

Differences Between Trading CFDs on Stocks and Owning Shares Directly

Bargaining shares CFDs with Exness provides a wide range of benefits to traders interested in obtaining exposure to global stock markets without buying the actual stocks. The following are the benefits of trading shares CFDs on Exness:

Access to Global Markets: Exness offers a wide selection of stocks from major global markets such as the US, UK, and Europe. This gives you the opportunity to diversify your portfolio and trade internationally.
Leverage: With CFDs, you can trade larger positions using less capital by taking advantage of leverage. This can amplify your potential profits but also increase risks, so it’s important to use leverage cautiously.
No Ownership of the Stock: When you trade CFDs, you don’t own the underlying stock. This means you don’t need to manage physical shares or deal with complex ownership processes, simplifying your trading experience.
Profit from Both Directions: CFD trading allows you to speculate on both rising and falling stock prices. If you believe the stock will fall, you can open a short position, providing more opportunities to profit regardless of market direction.

Exness stock CFD trading provides traders with risk management flexibility via stop-loss orders, access to global markets, and trading with variable leverage. This is attractive to traders who want to ride the stock market without owning shares.

Dividends and Corporate Actions when Trading CFDs on Stocks

Dividends and corporate actions are important to remember when you buy and sell CFDs on stocks with Exness. Since you do not own the underlying stocks when you trade CFDs, Exness will take action on your position in the case of dividends and corporate actions like stock splits, mergers, or acquisitions.

If the issuer company you have traded CFD shares with distributes a dividend, Exness will debit or credit you respectively if you are short (sold the CFDs) or long (bought the CFDs). Long positions (purchasing the CFDs) will generally be credited the dividend and short positions (shorting the CFDs) will generally be debited the value of the dividend. Company actions can also affect the value of your positions in CFDs, and Exness will credit them to your account based on the actions taken by the company. Always stay informed about such events because they can affect your trading plan and account equity.

Margin Requirements and Leverage for Equity CFDs

When you are trading equity CFDs with Exness, margin levels and leverage are the focus of your ability to open and maintain positions. Margin is the amount of capital you have to set aside in order to open a position, while leverage allows you to control a larger position with fewer funds.

Margin Requirements: Margin requirement varies from the stock to the kind of account. Large stocks, for example, will require a smaller margin compared to volatile or less liquid stocks.
Leverage: Exness provides leverage on equity CFDs, by which traders are able to extend their potential return (or losses). The ratio of leverage differs according to the stock and type of account but generally falls within the range 1:5 to 1:20 in case of equity CFDs.

Leverage does increase your exposure to movement in the market, but it also increases risk. Make sure you manage your risk using stop-loss orders and trade only with funds you can afford to lose. Always monitor your margin level to prevent margin calls, which occur when your account balance falls below the margin requirement.

How to Analyze Stocks for Successful CFD Trading

To analyze stocks for profitable CFD trading, you must look at both fundamental and technical analysis. Fundamental analysis involves analyzing the company’s financial well-being, earnings report, industry trends, and economic conditions that could affect the value of the stock. Technical analysis looks at historical price movements and volume information in an effort to determine trends and patterns. Traders typically use indicators such as moving averages, RSI, and MACD to determine momentum, overbought/oversold, and potential entry/exits.

Short-Term Stock CFD Strategies

Short-term stock CFD trading involves making a profit on the moves in hours or days. Traders tend to use scalping or day trading strategies of continuous market monitoring. Scalping involves making a large number of small trades in order to profit from tiny movements in price, while day trading involves buying and selling shares over the same day with the hope of benefiting from intraday price volatility. Both techniques are greatly dependent on technical analysis because it is harder to predict short-run price movements through fundamentals.

Strategies for Long-Term Trading in Stock CFDs

Long-term CFD stock investors typically use the overall direction of the market and position or swing trading strategies. Position trading is having positions opened for weeks, months, or years and is based on fundamental analysis, such as the possible growth of a company or long-term market conditions. Swing trading is the recording of the mid-term movements of the stock price by having the stock opened for weeks or several days on the basis of technical structures and market sentiment. Both methods require good understanding of the basics of the stock and an ability to analyze market trends over time.

Commissions and Spreads for CFDs on Shares on Exness

Exness offers competitive commissions and spreads for trading CFDs on stocks. The spread is the difference between the buying and selling price, and it varies depending on the stock and market conditions. For commission fees, Exness levies a fixed commission per lot traded, and the fee depends on the type of account you have and the stock you are trading. The spreads and commissions also depend on market volatility and liquidity.

Spreads: Typically low, with tighter spreads for major stocks during high liquidity periods.
Commission: Fixed per lot, and can vary depending on account type (Standard or Raw Spread).
Account Type: Different account types may have different spreads and commission rates.
Market Liquidity: Spreads can widen during periods of high volatility or low liquidity.

Overall, Exness offers cost-effective trading for stock CFDs, making it suitable for both beginners and experienced traders.

Common questions

Which stocks are available for CFD trading on Exness?

Exness offers a variety of stocks from major global markets, including the US, UK, Europe, and Asia. Popular stocks like Apple, Tesla, Microsoft, Amazon, and many others are available for CFD trading.

What leverage is available for trading CFDs on stocks at Exness?

The leverage for stock CFDs on Exness depends on the stock and the account type. Generally, it ranges from 1:5 to 1:20. However, it may vary based on market conditions and the specific stock you trade.

What are the trading hours for CFDs on stocks on different exchange platforms?

CFD trading hours for stocks follow the opening hours of the respective stock exchanges. For example, US stocks are available for trading during US market hours, typically from 9:30 AM to 4:00 PM EST, while UK stocks follow the London Stock Exchange hours.

Can I trade IPOs via stock CFDs on Exness?

No, Exness does not currently offer the ability to trade IPOs (Initial Public Offerings) via CFDs. IPO stocks usually become available for CFD trading after they have been listed on the exchange.

Does a stock split affect my CFD positions?

Yes, stock splits do affect CFD positions. When a stock splits, the number of shares in your CFD position will adjust according to the split ratio. However, the total value of your position should remain the same, as the share price adjusts accordingly.

Can I trade shares of companies from different countries via CFDs on Exness?

Yes, Exness offers CFDs on stocks of companies from various countries. Traders can access shares from major international markets, such as the US, UK, Germany, and other regions across the globe.