Further to Grahods example, whilst it can appear to be a good way to get into large quantities of a stock for little outlay, for every cent the share drops you are loosing $200.00, so you need to have additional funds in your CFD account to cover any drop in the price. Obviously a good trading plan, and knowledge of stop losses is essential, because if the share does move against you it can have disastrous consequences to your trading capital.
