Understand the risks before each trade
The following describes common risks in leveraged CFD trading and is not an exhaustive list. Individual products and account arrangements may carry additional risks; read the relevant specifications and account agreements.
Understand the product, specifications, costs, margin requirements and execution rules before trading. Consider your experience and capacity for loss. Past performance does not predict future results, and risk-management tools do not guarantee capital or execution prices.
Volatility and price gaps
Economic releases, policy changes, unexpected events and reduced liquidity can cause rapid movements. Prices may gap over intermediate levels after a market reopens or major news breaks, changing position values substantially in a short period.
Leverage, margin and liquidation
Margin is only part of a position’s notional value, while gains and losses reflect the position itself. Adverse moves can quickly reduce available margin and trigger additional requirements or liquidation. Automatic closure does not guarantee a particular loss limit; the account agreement defines the applicable rules.
Execution prices and order limitations
Market, pending and protective orders are subject to market conditions and execution rules. Fast markets or limited liquidity may cause slippage, delay or execution away from a requested price. Ordinary stop-loss instructions are not guaranteed stops; understand the distinction between triggering and execution.
Charges, exchange rates and holding costs
Spreads, commissions, overnight financing and currency conversion can affect results. Charges may differ by instrument and holding period. Currency movements also matter when the account and contract currencies differ. Check current contract specifications and charges before placing an order.
Platform, connectivity and account security
Connectivity loss, device faults, software errors or third-party outages can affect prices, orders and position management. Protect your credentials, use trusted software and contact official support if you detect a problem. Technical tools cannot eliminate market risk.
Product differences and concentration
Assets differ in volatility, liquidity, schedules and quotation rules. Several positions can depend on the same economic factor, so holding different symbols may not reduce overall exposure. Correlations can change under stress.
Service and operational risk
Account services depend on service providers, accurate records and operational continuity. Review account notices, order history and charges regularly; contact official support about discrepancies or interruptions and retain relevant records.
Suitability and ongoing monitoring
Consider trading only if you understand the product and can bear potential losses, without relying on borrowed or essential living funds. Plan entry, exit and contingencies, and monitor positions, margin and notices. Analysis, backtests and others’ results provide no guarantee.