CFD Trading is Risky
CFD trading carries a high level of risk and may not be suitable for all investors. CFDs are highly leveraged over-the-counter derivatives. You can lose more than your initial deposit and your potential losses may be unlimited.
Risks
As with any products that involve the financial markets CFDs are inherently risky. CFD trading is leveraged so whilst it can lead to greater returns on smaller deposits, it is also possible to lose more than your deposit. While stop losses can be allocated to each trade, they may not be guaranteed and will not always be filled at the level you requested in volatile markets due to market gapping or slippage. Investors should also look at the price of commission as many CFD providers have a commission charge.
Remember anything you put your money into should meet your investment goals and suit your circumstances. Being a leveraged product, CFDs by nature involves risk.
CFDs are not suitable for everyone. My message to investors is this: if you don’t understand contracts for differences, then do not invest.
No one can guarantee the performance of any financial product. You can lose all of or more than the money you put in if something goes wrong.
You are taking a considerable risk if you put all your money into one type of investment (for example, trading CFDs). Spreading your money between different types of investments (‘diversification’) reduces the risk of losing everything.
Disclaimer
This educational material does not constitute financial product advice and does not take into account your investment objectives, financial situation or particular needs.
Trading carries a high risk and you should never trade with money you can’t afford to lose. The contents of this CFD trading guides are for educational purposes and should not be considered in any way as investment advice. Ultimately you, the trader, must take responsibility for your own trading decisions.
CFDs involves substantial risk of financial loss.
The Author accepts no liability whatsoever for losses or damages resulting either directly or indirectly from the use of the information contained in this guide.
Finally, anybody considering adding CFDs to their trading armoury should make sure that they understand the risks associated with this margin traded product. As with any financial product, the risks will be significantly higher if you don’t take the time to understand the product.
The opinion and information that we include on this website, in writing or through social and digital media, does not constitute any investment recommendations. We only reflect our point of view on the markets. Therefore, we are not making recommendations to buy or sell any financial product.
By trading with securities and derivatives on margin you are taking a high degree of risk. You can lose all of your deposited money. You should start trading only if you are aware of this risk that is involved.
CFDs & FX are complex instruments and come with a high risk of losing money rapidly due to leverage.
