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Key risk warning
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Types of risk
Market risk
The price may move against your position. Losses may amount to the entire balance of your account.
Leverage risk
Leverage magnifies both profits and losses: a small price movement can lead to the loss of a substantial part or all of the funds in your account and to the forced closure of positions.
Liquidity risk
At certain times liquidity falls, spreads widen and orders may be executed at prices that differ materially from those expected.
Gap risk
When the market opens after the weekend, or following unexpected events, the price may jump. In such cases a stop-loss is executed at the first available price.
Swap risk
When a position is held for an extended period, accumulated swaps may account for a significant part of the result.
Currency risk
If the instrument's currency differs from your account currency, the result also depends on movements in the conversion rate.
Technology risk
Connectivity failures, power outages and equipment faults may prevent you from managing a position in time.
Automated trading risk
Expert advisors execute a predefined algorithm and do not assess a changed market context. An error in the algorithm can lead to rapid losses.
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What you should not do.
- Trade with money whose loss would materially affect your financial position.
- Use borrowed funds or credit.
- Treat past performance as an indicator of future results.
- Trade instruments whose mechanics you do not understand.
