CFD is short for 'Contract for Difference', you pay the difference between current value of the underlying asset and value at contract time. The main difference between a Stock and a Stock CFD is the ownership and leverage. Stock CFDs have no rights for ownership. As CFDs are traded on margin, it is not required to purchase a share for the full amount. Trading derivatives such as CFDs amplifies risk and reward via leverage and allows you to access the market in a cost-efficient and time-efficient manner.