Investing in a stock, either via a broker, bank, or pension fund, is an approach that works on the buy and hold principle. Therefore, you buy and hope it rises over the years. Sometimes you also get dividends, depending on the sector.

CFD/Option trading is an instrument that allows the trader to enter the market for a short period and speculate on the movement of the stock either up or down without physically owning it, this could be for a week , as little as a day or even a few hours, as an example as a Listed company producers its latest earning report. This usually moves the stock especially after the CEO’s forecast for the next quarter.

Which is better?