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The stock market is a network of exchanges where buyers and sellers trade shares of publicly listed companies. Prices move according to supply and demand, driven by company performance, economic data and sentiment. When you buy a share you own a small piece of that company. Exchanges match orders and set the current market price in real time throughout the trading day.

“Stock” is the general term for equity ownership, while a share is one unit of that ownership. In this broker’s CFD offering, a stock CFD tracks the price of shares without giving ownership of the underlying shares.

A stock index measures the performance of a selected group of shares. You cannot buy the index itself, but you can trade products such as index CFDs that track its price. An index CFD gives price exposure without ownership of the constituent shares.

Investing usually involves owning assets for a longer period, while CFD trading involves speculating on price movements without owning the underlying asset. CFD traders may take long or short positions and use leverage. Both involve risk, and neither guarantees a return.

Yes. With a stock CFD, you speculate on the price of a share without owning it. You may take a long or short position, and leverage means a relatively small margin controls a larger exposure. Losses can be rapid; whether losses can exceed the account balance depends on the broker’s applicable account terms and negative-balance policy.

Prices change constantly as buyers and sellers react to new information. Strong earnings, positive economic data or optimism push demand and prices higher; weak results, bad news or fear push them lower. Interest rates, geopolitics and overall sentiment all play a part. Ultimately price is set by the balance of supply and demand at any given moment, which is why markets are unpredictable.