In plain English
What Share CFD means
A share CFD mirrors the movement of a listed stock, such as Apple or BP, but the trader does not receive the share itself. The position is normally cash-settled, and profit or loss depends on the difference between entry and exit prices, adjusted for position size, spread, dividends, and financing where applicable.
Why it matters
Share CFDs are often used when someone wants price exposure to a single stock with leverage or short-selling flexibility. The important distinction is that the trader has derivative exposure, not shareholder rights. That means no direct share ownership, voting rights, or corporate action rights unless the broker separately adjusts the position.
Example
If a share CFD tracks a stock at 100 and later at 104, a long position with 10 CFD units has a simplified gross gain of 40 currency units before spread and fees. If the stock pays a dividend while the position is open, the CFD may be adjusted instead of paying a dividend directly.
Quick answers
Common questions
Do share CFDs give voting rights?+
No. Voting rights come from share ownership, not from the CFD position itself.
Are share CFD dividends paid like share dividends?+
Not exactly. Brokers usually apply a cash adjustment rather than paying an actual dividend.
Sources