This document explains the risks a client faces when trading CFDs:
- Leverage:Small price movements can cause substantial losses relative to margin.
- Low liquidity:Closing a trade may become difficult or temporarily impossible.
- Stop loss:Execution at the specified price is not always guaranteed.
- Counterparty risk:Financial obligations depend on the contracting company.
- Currency risk:Converting profit and loss into account currency changes the outcome.
- Operational risk:Platform disruption and immediate execution can have financial consequences.