Stock trading can take many forms and many traders confuse the two main types: Equity trading (also known as trading real stocks) and CFD trading (or buying and selling Contracts for Difference on stocks).

So if you want to see the differences in terms of leverage, margin, short selling and fees – trading expert David Jones covers all these angles. Still have questions about stock trading, equities and CFD’s – let us know in the comments and we’ll get back to you.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.