Stock Trading Involves Buying Or Selling A Share Of Ownership In An Individual Company Listed On An Exchange Such As The ASX Or NASDAQ. Stocks Are Typically Traded Without Leverage And Through A Stock Exchange. Stock CFDs However Can Be Traded Using Leverage And Are Done So Over-The-Counter (OTC). Participants Are Able To Access Stocks Of Individual Companies, Building Positions In An Individual Company Or In A Specified Sector Of The Economy. Participants Often Build Strategies With Diversification In Mind To Diversify Away Unsystematic Risk Across A Number Of Companies Or A Range Of Sectors. Investors May Choose To Build Positions In Defensives If They Are Predicting Volatility. Similarly, Investors May Decide To Build A Portfolio Around A Growth Strategy Consisting Of Small To Mid-Cap Technology Stocks.