What Is Share Dealing and How Does It Work – 2024 Guide

Share dealing is a process by which investors acquire securities of a company through the purchase of common stock or notes issued by the company. Share dealing is an important part of the capital raising process for many companies.

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What is a CFD in trading?

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A contract for differences (CFD) is an agreement between an investor and a CFD broker to exchange the difference in the value of a financial product (securities or derivatives) between the time the contract opens and closes. It is an advanced trading strategy that is utilized by experienced traders only.

CFDs are a type of derivative that allows you to speculate on the price movements of assets without actually owning them. For example, you might be able to trade stocks and commodities using CFDs, betting on whether they will rise or fall in value. While CFDs can be an incredibly useful tool for investors, they can also be risky and volatile.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. Losses may exceed the value of your position. You should consider whether you understand how derivatives work and whether you can afford to take the high risk of losing your money.

What is Share Dealing?

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Share dealing is a way of buying and selling shares in companies. The process is simple: you register with a broker and buy or sell shares in companies. You can also use share dealing to take advantage of stock market fluctuations.

There are a few things to keep in mind when using share dealing:

Make sure you understand the risks involved. Share dealing can be a high-risk investment, and there’s always the risk of losing your money. Before investing, make sure you understand all the risks involved.

Make sure you have access to affordable shares. Shares bought through share dealing may be more expensive than shares bought directly from the company. You may need to have enough money to cover the cost of shares, plus any brokerage fees.

Research the companies before buying or selling shares. Do your research before buying or selling shares to make sure you’re investing in a good company. Be aware of any regulatory issues that could affect the company’s future.

How does it work?

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It is a trading method where shares of a company or security are bought and sold between two or more investors. The practice dates back to the 17th century when share dealing was used as a way to arbitrage prices. Arbitrageurs would buy shares of one company and sell them immediately, hoping to earn a profit by buying low and selling high.

Today, it is used as a way to invest in companies and securities. Platforms allow investors to buy and sell shares of companies and securities from around the world. They also provide information about the prices of stocks and securities, as well as current news about companies.

Share dealing is an important part of the stock market ecosystem. It allows investors to buy and sell shares of companies and securities, which helps to keep markets stable. Additionally, share dealing platforms help to connect investors with new opportunities, which can lead to higher returns on investment.

How do I start share dealing?

When you want to start share dealing, the first step is to create an account on a dealing platform. Popular platforms include brokercomparison.com, BittyBot, ShareRing, and BitMEX. After creating your account, you will need to deposit Bitcoin or Ethereum into your account. Once you have deposited your crypto, you can start issuing shares.

The Different Types of Share Deals

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There are a few different types of share deals that you can do, and each has its own advantages and disadvantages.

The first type is a straight share deal. This means that you purchase shares of the company from the founder for a fixed price, and then you receive dividend payments in proportion to the number of shares you own. This is the most common type of share deal, and it’s usually the easiest to get started with.

The second type of share deal is a convertible deal. This means that you don’t buy any shares outright – instead, the company converts some or all of your existing stock into new shares, which gives you more voting power and control over the company. This type of deal can be more complex to get started with, but it can offer greater rewards if the company goes on to achieve success.

The final type of share deal is an option agreement. This allows you to purchase options to purchase shares in the future at a fixed price, which gives you the chance to make money if the stock price rises later on. Option deals can be more complicated to set up than other types of share deals, but they can offer greater potential rewards if everything goes according to plan.

What are the risks of Share Dealing?

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There are many risks associated with share dealing, some of which are outlined below.

The risk of losing your investment:

One of the biggest risks associated with share dealing is the risk of losing your investment. This is because share prices can be volatile and can often go up and down a great deal, meaning that you could end up making a loss if you buy shares at the wrong time.

The risk of not being able to sell your shares:

Another risk associated with share dealing is the risk of not being able to sell your shares. This is because share prices can be volatile and may not be worth as much when you try to sell them. If this happens, you could end up losing money overall.

The risk of investing in a company that goes bankrupt:

This is because it’s possible for companies to fail and thus investors lose their money. If a company does go bankrupt, it may take a long time for your investment to recover – so be sure to do your research before buying shares!


As the popularity of online share dealing continues to grow, it’s important for those interested in this kind of trading to be well informed. In this article, we’ve covered the basics of the concept, including what is involved and what potential risks and rewards are associated with it. Be sure to bookmark this page so that you can keep up with all the latest news and developments in the world of share dealing!