What are stock CFDs?
A CFD (contract for difference) is an agreement with a broker to exchange the difference in an asset's price between the moment you open a position and the moment you close it. A stock CFD, or share CFD, uses the price of a company's shares as the reference.
You do not buy the share itself. If the price moves in the direction of your position, the broker credits the difference. If it moves against you, the difference is taken from your account. You can open a long position (gain if the price rises) or a short position (gain if the price falls).
Exness lists stocks among the instruments on its Standard account: forex, metals, cryptocurrencies, energies, stocks, indices. In total it offers over 200 CFD instruments. Which individual companies are available, and on which account types, is shown in the trading platform.
Trading stock CFDs with leverage can lose money fast, including the whole deposit. Read Risk management before you trade.
Stock CFD vs owning the share
| Point | Owning the share | Stock CFD |
|---|---|---|
| What you hold | A part of the company, registered in your name | A contract with the broker on the price |
| Voting rights | Yes, at shareholder meetings | None |
| Dividends | Paid to you as a shareholder | A cash adjustment on the account, if the broker applies one |
| Short selling | Limited and depends on the market | Open a short position the same way as a long |
| Leverage | Usually none on a cash account | Yes, you put up margin only |
| Overnight cost | None for holding | Swap may apply |
| Who you deal with | Exchange through a licensed broker | The CFD provider |
In Pakistan, shares of listed companies are bought through brokers licensed by the Securities and Exchange Commission of Pakistan (SECP), with trading in listed securities and commodities only via SECP-licensed securities and futures brokers. If you want to own shares, see PSX basics.
No voting rights
A CFD gives you exposure to the price only. You are not a shareholder, you get no vote, and you have no claim on the company's assets.
Dividend adjustments
When a company pays a dividend, its share price usually drops by about the dividend amount on the ex-dividend date. To keep CFD positions fair, brokers generally make a cash adjustment: long positions are typically credited and short positions debited. How and when Exness applies this to a given stock is not covered here; check the instrument specification in the platform or the Exness Help Center.
Swaps
A swap is a charge or credit for holding a position past the daily rollover. On stock CFDs it reflects the cost of financing a leveraged position. Swap rates differ by instrument and by direction.
Exness lists Pakistan among countries where Algeria, Azerbaijan, Bahrain, Bangladesh, Brunei, Chad, Comoros, Côte d'Ivoire, Djibouti, Egypt, Indonesia, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Kuwait, Lebanon, Libya, Maldives, Mauritania, Morocco, Niger, Oman, Pakistan, Qatar, Saudi Arabia, Senegal, Tajikistan, Tunisia, Turkiye, Turkmenistan, United Arab Emirates, Uzbekistan clients receive swap-free status automatically. This status depends on your account and trading activity and can change, so check whether it covers stock CFDs on your account in the Exness personal area. More on this: Swap fees and Islamic finance.
Leverage and margin
Leverage lets you open a position larger than your deposit. Margin is the part of your funds the broker holds to keep that position open. Higher leverage means less margin, but the same price move gives the same profit or loss on the full position size, so losses grow relative to your deposit.
Exness lists a maximum leverage of 1:Unlimited on the Standard account, but this figure applies to eligible instruments and conditions, not to every instrument. Leverage on stock CFDs is set per instrument; check the specification in the platform before trading.
Use the calculator below to see the margin needed for a position size at a given leverage.
Fill in the empty fields to see the result.
Margin call and stop out
A margin call is a warning that your margin level has fallen low. A stop out is the level at which the broker starts closing positions automatically. For Exness accounts: Standard Cent: margin call 60%, stop out 0%; Standard: margin call 60%, stop out 0%; Pro: margin call 30%, stop out 0%; Raw Spread: margin call 30%, stop out 0%; Zero: margin call 30%, stop out 0%.
For stocks there is an important exception: Exness states that the stop out level for stocks can be raised in case of increased market risk and during the stocks daily break hours. A position that would survive on a forex pair can therefore be closed sooner on a stock CFD. Check the current condition in the Help Center. Exness also states: balance reset to 0 after stop out.
Ready to try it on a real or demo account?
Partner link · trading carries a high risk of loss
Earnings gaps
Companies publish quarterly results, usually outside exchange hours. A strong or weak report can make the share open far from the previous close. This jump is called a gap.
On a CFD, a gap has these effects:
- A stop-loss is not a guarantee. If the price opens beyond your stop, the order is filled at the next available price, which can be much worse.
- A pending order can be filled at the opening price rather than the price you set.
- With leverage, one gap can take a large part of the account.
Many traders reduce position size or close positions before earnings. This is a risk choice, not a rule. The Economic calendar and fundamental analysis page explains how to follow scheduled events.
Trading hours of the underlying exchange
A stock CFD is priced from the exchange where the share is listed, so it trades only while that exchange is open. Outside those hours there is no new price and you cannot open or close positions. Holidays on that exchange close the CFD as well.
Exness trading servers run on UTC, so convert the hours to Pakistan time yourself. The exact schedule per instrument is in the platform specification and in the Help Center. Exness states that during stocks daily break hours the stop out level is raised, so do not leave a thin margin through the close.
Execution and costs on Exness
- Standard account: market execution, no commission.
- Pro account: instant (forex, metals, energies, stocks, indices), market (cryptocurrencies). With instant execution, requotes can occur.
- Raw Spread and Zero accounts charge a commission per lot; the stock-specific amount is in the platform specification.
Spreads on stock CFDs often widen at the exchange open, around earnings and close to the close. Compare accounts on Account types.
Legal position in Pakistan
Read this before opening any account. On residency and offshore products, per the SBP, the purchase of offshore forex/margin/CFD products by Pakistani residents violates section 4(1) of FERA 1947, and per the SBP, remitting foreign exchange to overseas forex/margin/CFD platforms is not allowed through any payment channel (FERA s.5(1)). On protection, per the SECP, offshore platforms have no Pakistani licence or oversight and offer no legal protection or recourse. Details are on Law and regulators and Regulation and Safety.
Frequent questions
What is a stock CFD in simple words?
A contract with a broker that pays or charges the difference in a share's price between opening and closing. You never own the share.
Do I get dividends on a share CFD?
Not as a shareholder. Brokers usually apply a cash adjustment on the ex-dividend date. Check how Exness handles it in the instrument specification.
Can I vote at company meetings with a stock CFD?
No. A CFD carries no voting rights.
Why did my stop-loss fill at a worse price?
The share probably opened with a gap, for example after earnings. Stops are filled at the next available price.
When can I trade a stock CFD?
Only during the trading hours of the exchange where the share is listed. See the schedule in the platform.
What leverage applies to stocks on Exness?
It is set per instrument and is not the account maximum. Check the specification in the platform and use the margin calculator above.
Can I practise first?
Yes, on a demo account, which uses virtual funds of 10,000 USD (virtual).
