One of the key advantages of CFD trading is that you can trade on margin, which gives you 'leverage'. This means you can trade without having to put down the full value of a position. As your money is not tied up in one transaction, you can use it for other investments. Read more about trading with leverage.
For example, to buy the equivalent of 10,000 telecom company share CFDs with us, you may only need to deposit 5% of the total position value that you might have to pay if you were buying physical shares from a stock broker.
If each share cost 150p, then you would only need to deposit £750 of position margin with us (5% of £15,000 = £750) plus the applicable commission, which in this instance would be £12.
To complete the equivalent trade with a stockbroker, you would have to pay the full value of £15,000, plus CFD commissions and taxes.