What are Shares

A share represents a stake in a particular company and as the price of the share moves, the value or market capitalisation of the company does too. A trade of 1 CFD will be the equivalent to trading 100 shares in the underlying market. When you trade a share as a derivative, you can speculate on the price without owning the underlying share itself or paying stamp duty.

Why trade Shares with WG

Gain full exposure to a position, with as little as 5% deposit when you trade CFDs with WG.
The price we display is equivalent to the market spread, allowing for increased transparency in commission.

For all CFD trading in single stocks, 1 lot would represent 100 shares but would make or lose you £1 per pence movement in UK shares and $1 per cent movement in US shares.

Remember that US shares are priced in dollars so a movement from a share price of $100 to a price of $101 is a change of 100 ticks.

You will find detailed information below about our CFD Equities.

Please make sure you familiarise yourself with the Dividends and Corporate Actions concepts explained on this page.

Trading Individual Equities

Tick size is the price increment representing 1 whole trading unit by which P&L and both initial and variation margin are calculated. The Notional Value of the trade is (Price*Trade Size) / Tick Size.

The tick size for US shares is 0.01 (1 cent) whilst for UK shares it is 1 (1 penny).
Spreads

Please note that equity spreads are unlike the rest of WG CFD offering and can vary significantly, particularly at the start and end of a trading day. This is because they’re based around the market spread and hence can be significantly affected by both volatility and liquidity.

Minimum/Maximum Trade Sizes

The values shown are indicative; maximum trade sizes will vary from equity to equity, according to underlying liquidity.

Restrictions may be applied to maximum bet sizes for opening or closing trades.

The minimum stake for all shares is 1 CFD. A 1 CFD trade on a UK share traded in GBP or a US share traded in USD is equivalent in value to 100 shares.
Examples

Say ADS Securities Apple share price is $481.15/481.75 (bid/offer). You think Apple shares will rise over the coming weeks and buy (go long) 10 CFDs of Apple based on our buy price of 481.75.

Winning Trade

Sure enough, Apple shares rise in the market the following week and you decide to cash in on your profit by closing your CFD trade. Our current buy/sell price for Apple share CFDs is $483.25/483.85. You close your CFD position by selling 10 CFDs at $483.25.

Now remember, CFDs are an agreement between two parties to exchange the difference between the closing price of a contract and the opening price of a contract. The difference in value of trade from open to close will either net you a profit or a loss.

In this case, the underlying market moved in the direction you had predicted. So your closing value is $483,250 (10 x $483.25 x 100 shares), which is a marked increase from your opening value of $481,750 (10 x $481.75 x 100 shares). The net result is a profit of $1,500.

Losing Trade

Let’s now look at what would have happened if you were wrong and prices had moved against you.

Let’s say Apple shares fell from your opening buy price of $481.75 to reach $479.95, a movement of $1.80 against the direction that you had predicted.

Your closing trade value would be $479,950 (10 x $479.95 x 100 shares), which is a decrease from your opening value of $481,750 (10 x $481.75 x 100 shares), thus netting you a loss of $1,800.

Corporate Actions

We have already covered dividends above but there are other corporate actions that may affect the price of a single stock, these include stock splits, rights issues, mergers and acquisitions and spin offs. All of these can dramatically affect the share price and will be reflected accordingly on your account.