Short-term momentum players in "trading futures vs stocks" prefer the leverage inherent in futures. A 1% index move can translate to significant percentage gains on smaller margin usage compared to fully-funded stock positions. Simply put, Ethena juggles a bunch of crypto positions to keep the value of its token at $1.00. It claims that this crypto-native approach frees it from the regulations associated with fiat currencies (unlike USD Coin or PayPal USD). However, it's only opened up its reserves to weekly independent attestations since this April -- and it's unclear if it can maintain its delicate balancing act if another crypto winter begins. Traders should evaluate the similarities and differences between CFD trading versus futures, stocks, and options to make the best choice for their trading requirements. Here is a snapshot of the similarities and differences between CFD, futures, stocks, and options trading: CFDs Stocks Options Futures Instrument Type Derivative Physical asset Derivative Derivative Leveraged trading Yes No Yes Yes Short selling Yes Yes Yes Yes Trade size 1 1 100 Depends on the contract Cost structure Spreads and commissions Spreads and commissions Contract and clearing fees Contract and clearing fees Availability Banned in the US Global Global, but US-specific Global Where to trade Multi-asset brokers Equity brokers Options brokers Futures brokers Incurrs Tax liabilities Yes Yes Yes Yes Asset availability Forex, stocks, commodities, indices, ETFs Stocks, ETFs Forex, stocks, commodities, indices, ETFs Forex, stocks, commodities, indices, ETFs Risk High Medium High High Flexibility High Medium High Medium Liquidity High High High High Physical ownership No Yes Optional Yes Trading venue OTC Broker Exchange Exchange How to Decide What Type of Asset Wrapper to Trade The choice depends entirely on the trader or investor. I recommend answering the questions below to decide which asset to trade. Answer the following questions: Do you seek to trade using leverage? - CFDs and options Do you want to build a retirement or dividend portfolio? - Stocks Do you want to implement hedging strategies ? - CFDs, options, and futures Do you want to go long and short? - CFDs, options, and futures Do you require flexibility? CFDs and options My Take CFDs are the best choice for most traders, while stocks are the only choice for retirement accounts, long-term buy-and-hold investors, and dividend portfolios. I recommend options only for traders without access to CFDs, while futures are best for commodity-centric companies to hedge operations. Technological integration with algo systems in "trading futures vs stocks" has driven execution times below 10ms for futures orders, compared to longer settlement windows affecting equity transaction speed.