The main difference between Stock CFD trading and investing in stock is that CFDs are leveraged, while investing in stock is non-leveraged. Stock contracts for difference (CFDs) are leveraged products used for short-term speculation, while stock trading is for long-term investment. With stock CFD trading, you’ll be taking a position on price movements – without taking ownership and putting a margin amount down as leverage to open your position. This increases both profits and losses. In stock investing, you directly own the company's shares and need to prepare the full amount for the trade upfront.