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Risks and costs
of CFD trading

The most important page on this site. Five minutes of reading worth doing before any real deposit.

Important: 80% of retail investor accounts lose money when trading CFDs with this provider.

Principal risks

CFD risks are not abstract. Each one has a concrete effect on your account balance.

Leverage

At 1:10 leverage, a ten percent market move against the position means the loss of all deposited capital. Leverage is the most common cause of rapid losses.

Volatility and price gaps

Markets can move in jumps. A stop-loss helps, but during sharp moves it may not execute at the expected price.

Emotional decision-making

Trying to recover a loss with another trade, or closing a winning position too early, are among the most common mistakes.

Holding costs

The longer a position stays open, the more overnight funding accumulates.

Cost overview

The spread is usually presented as the main cost, but it is not the only one. Rates vary by instrument and must be verified directly with the provider.

Cost typeDescriptionWhen it applies
SpreadThe difference between the buy and sell priceOn opening every position
Overnight fundingCharge for holding a position overnightDaily on open positions
Currency conversionConversion of the result into your account currencyOn foreign-currency instruments
Account inactivityFee after an extended period without logging inPer provider terms
Verify rates at source

Spread levels and other charges vary by instrument and change over time. Check current terms in the platform before opening a position.

How to read the risk warning

The figure for the proportion of retail accounts in loss is not marketing copy. It is a regulatory disclosure specific to each provider, which must be published and kept up to date.

What the figure means

It states the proportion of that provider’s retail accounts that recorded a loss over the measured period. You are entering an environment where losing outcomes statistically predominate.

Calculate leverage impact

Protections for retail clients

ESMA has introduced mandatory protections for retail clients in the EU which regulated providers must observe:

Negative balance protection

A retail client cannot lose more than the balance held in the account with a regulated provider.

Leverage limits

Maximum leverage for retail clients is capped by regulation and varies by asset class.

Margin close-out

Positions are closed automatically when margin falls below a defined threshold.

Risk warningCFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.