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• Account Information
• Trading CFDs
• Equity CFDs Trading
• Risk Management

CFD Risk Management

What are the risks?

There is no way of knowing for sure the direction of the prices of CFDs in advance. Therefore, like many investments, CFDs carry a risk that market prices may go in the opposite direction of the view held. They also offer you a high degree of leverage; using a small deposit (margin) you can control a much larger position. This can dramatically magnify your profits but also your losses and if not mitigated correctly you can lose more than your initial investment.

Your exposure to losses can be mitigated by the use of stop losses and we recommend you use these on each trade. You should set some limits on the length of time you are willing to invest and the amount of loss you are willing to incur.

CFD trading is inherently risky and is not appropriate for all investors. You should know how much you potentially can lose and honestly evaluate if you can afford to lose it in view of your financial resources and investment goals.

Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.