Yes, CFDs offer several advantages over traditional trading. They provide leverage, allowing you to trade larger positions with less capital. You can profit in both rising and falling markets by going long or short. Additionally, CFDs grant access to a wide range of global markets from a single account, often with lower fees compared to traditional stock trading. However, the high risk associated with leverage requires proper risk management.

In most cases, brokers set the leverage levels based on regulations and asset types, but some brokers allow traders to adjust leverage within certain limits. Lowering leverage reduces risk exposure, while increasing it amplifies both potential profits and losses. Always check with your broker to understand your available leverage options and ensure they align with your risk tolerance.

Yes, but not in the traditional sense. If you hold a long (buy) CFD position on a stock that pays dividends, you’ll receive an adjustment equivalent to the dividend amount. However, if you have a short (sell) position, the dividend amount will be deducted from your account. This adjustment ensures fair pricing and reflects corporate actions without requiring stock ownership.

Yes, reputable brokers provide real-time CFD pricing that closely reflects the actual market prices of underlying assets. Prices are sourced from liquidity providers and financial exchanges, ensuring accuracy. However, slight differences (spreads) may exist due to execution models and market conditions. Always use a reliable broker with transparent pricing to avoid discrepancies.

You make money in CFDs when the market moves in your favor—buying (going long) when prices rise or selling (going short) when prices fall. Conversely, if the market moves against your position, you incur losses. Profits and losses are determined by the difference between the entry and exit prices, multiplied by the number of contracts. Since CFDs are leveraged, both gains and losses are amplified, making risk management essential.