Risk warning
Trading CFDs carries a high risk of loss. Read carefully before opening an account.
Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. xx% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The main risks
Leverage and losses
Leverage lets you open positions much larger than the capital committed: even a small price move can cause large losses quickly, up to the whole amount deposited.
Volatility and gaps
Prices can move quickly, especially around news and data, and open far from the previous close. In those cases orders, stop losses included, may be filled at worse prices than requested.
Liquidity
At times of low liquidity — overnight, on holidays or in exceptional conditions — spreads can widen significantly.
Counterparty
CFDs are not traded on a regulated market: your counterparty is ICFD LTD. Your positions therefore also depend on the provider's soundness.
Currency
If the instrument is in a different currency from your account, the result in euros also depends on the exchange rate.
Costs
Spreads, swaps and any commissions reduce your result; holding positions for long periods increases financing costs.
Technical risks
Connection, device or platform problems may temporarily prevent you from placing or changing orders.
Protections for retail clients
- Leverage limits by asset class, from 1:30 to 1:2.
- Close-out of positions at 50% of the required margin.
- Negative balance protection.
- A ban on bonuses and incentives linked to CFD trading.
These protections do not remove the risk of losing all the capital you deposit. If you are not sure you understand how CFDs work, seek advice from an independent adviser.