What is the difference between trading derivatives and shares?
The key difference is that derivatives are instruments that are secondary to an underlying asset. You are effectively trading the value of a share, and not the share itself. This allows for a lot of benefits to traders! Trading derivatives allows for the use of leverage, which can give you significantly more profits.
Much faster execution times. If you have made enough profit from a share and now you want to close your trade, you can do so much quicker than traditional share trading. When trying to sell actual shares, you have to wait for someone willing to purchase from you. This can be very hard after a large upswing in the market.