Risk Disclosure
Trading leveraged products carries a high level of risk. Read this risk disclosure carefully so you fully understand the dangers before you trade.
Definition: High-Risk Investment
Trading forex, CFDs and shares online carries a high level of risk and may not be suitable for all investors. The majority of retail investor accounts lose money. You can lose some or all of your invested capital, so never trade with money you cannot afford to lose.
The Risk of Loss
When you trade leveraged products such as forex and CFDs, price movements can quickly work against you. Because leverage magnifies both gains and losses, even a small move in the market can result in a loss that is greater than your initial deposit. You should only trade with capital you are fully prepared to lose.
Leverage and Margin
Leverage allows you to open large positions with a relatively small amount of capital. While this can increase potential returns, it also significantly increases your exposure to loss. If the market moves against you, your broker may issue a margin call or automatically close your positions, potentially crystallising a substantial loss.
- Higher leverage means higher risk, not just higher reward.
- A margin call can force you to add funds or close positions.
- Positions may be liquidated automatically without notice.
- Losses can exceed your original deposit on some products.
Market Volatility
Financial markets can be extremely volatile. Prices may move sharply in response to economic data, political events, or unexpected news, sometimes outside of normal trading hours. Gaps in price can prevent orders from being executed at your requested level, resulting in slippage and larger-than-expected losses.
No Guarantee of Profit
Past performance is not a reliable indicator of future results. No trading strategy, tool or signal can guarantee a profit, and any examples shown on this website are illustrative only. Always assume that trading involves the genuine possibility of losing money.
Trade Responsibly
Before trading, make sure you fully understand the product, the costs involved, and the risks you are taking on. If you are in any doubt, seek advice from an independent, FSCA-regulated financial services provider. For more on our position, see our disclaimer and terms of use.
Questions
If anything in this risk disclosure is unclear, please contact us before acting on any information on this website.