Share trading in the underlying market is the buying and selling of company shares with the aim of making a profit. Shares represent a portion of ownership of a public company. At AMQ, we offer the opportunity to spread bet or trade CFDs on shares, so you don’t actually own the underlying share.
One of the features of spread betting and CFD trading is that you only need to deposit a percentage of the full value of your position to open a trade, known as trading on leverage. Remember, trading on leverage can also amplify losses, so it’s important to manage your risk.
With spread betting, you buy or sell an amount per point movement for the share instrument you are trading, such as £5 per point. This is known as your stake. With CFD trading, you buy or sell a number of units for a particular instrument. For every point or unit that the price moves in your favour, you gain multiples of your stake, and vice versa.
When you spread bet or trade CFDs on shares on our platform, you don’t buy or sell the underlying share. Instead, you’re taking a position on whether you think the company’s share price will go up or down.