CFD stock trading and traditional stock trading have some key differences. In traditional stock trading, the investor owns the stock. In CFD trading investors enter into a contract with the broker to pay or receive the difference in price based on the direction of their trade. One of the key differences between these two is margin and leverage. In CFD trading, traders can conduct transactions for amounts that exceed the capital invested. This can potentially increase the returns of an investment, but it can also increase the risk of loss if the investment does not perform as expected. This leverage is not possible in traditional stock trading, where the full purchase price of the stock must be paid upfront. CFD trading also allows investors to short sell stocks, meaning they can profit from falling prices, which is not possible with traditional stock trading. However, it should be remembered that investing in stock CFDs is more risky than investing in traditional stocks.