Contracts for Difference (CFDs) and traditional stocks are two of the most popular trading options available in financial markets. Both come with distinct advantages and risks, depending on your trading goals and strategiesCFDs. Understanding their key differences is essential for making informed investment decisions. What Are CFDs? cfds are derivative products that allow traders to speculate on the price movements of an asset without actually owning it. Whether the asset’s price rises or falls, traders can profit by taking long or short positions. CFDs cover a wide range of markets, including stocks, forex, indices, and commodities. What Are Traditional Stocks? Traditional stock trading requires purchasing actual shares of a company,…