CFD shares trading is a more versatile way of trading shares compared to the conventional shares trading. CFD shares trading does not entail the physical buying or selling of the shares. The trade is done based on where you think the share price will be headed. CFD shares trading means that you sell when you think there is an impending increase in the price of shares and then sell your shares when you think the share prices will go down. The accuracy of your predictions in the possible rise and fall of share prices will determine how much profit or loss you will have at CFD shares trading.

CFD shares trading is different from the conventional shares trading mainly because it is conducted on a leverage basis. It means that more exposure is given to share prices as compared to paying for the value of the shares in full. In CFD shares trading, you only need to shell out a percentage of the contract value which is usually at 5 to 10 percent. Because CFD shares trading is leverage based, the profits can be very high but there is also the possibility of losses. To avoid raking in big losses, it is important to have excellent risk management measures.

One of the ways to bring in a huge profit in CFD shares trading is through short-selling. Short-selling is a term used in CFD shares trading where the trader is trying to gain profit from the decline of the share prices. To do this, a person must open a position or simply to sell his share at an elevated price from the price that he will be closing the position with. Short-selling is a great move in CFD shares trading that gives you the opportunity to earn a profit from the decline in share prices just as easily as earning from the rising share prices. The trick is to always be on the lookout for the possible decline in the price of a specific share then selling it at its market price. This will put you at a short CFD shares trading position and you can close your position by buying at a specific quote later on.

In CFD shares trading there are a few charges that you have to pay. There is a commission that has to be paid. It is calculated based on a percentage of the contract value. There may also be a required funding fee which is the financing cost for holding a long position overnight.