1. Purpose and scope
This disclosure explains material risks connected with leveraged Forex and contract-for-difference trading. It is not exhaustive and does not replace independent financial, legal or tax advice.
Forex and CFDs are complex derivative products. They can create rapid losses and may not be appropriate for every person, even where an account can technically be opened.
2. Leverage and margin risk
Leverage allows a position whose notional value is larger than the margin reserved for it. Profit and loss are based on the full exposure. A relatively small market move can therefore cause a significant change in account equity.
- Margin requirements can change by symbol, volume, account and market condition.
- Free margin can fall quickly as open positions move.
- Positions may be closed automatically at the applicable stop-out threshold.
- Automatic closure may not prevent all loss during a gap or disrupted market.
3. Market, gap and liquidity risk
Prices can move rapidly because of economic data, central-bank decisions, elections, company announcements, geopolitics, market closures or unexpected events. In a gap, no executable price may exist between two levels.
Liquidity can reduce at rollover, around market open or close, during holidays and in stressed conditions. Spreads can widen and available volume can decline.
4. Execution and technology risk
Market and triggered stop orders are executed at the best available price under the prevailing conditions, not necessarily at the displayed or requested price. Positive and negative slippage are possible.
Internet failure, device failure, server interruption, latency, software error, power loss or incorrect use of the platform can delay or prevent an instruction. A pending order or stop does not remove these risks.
5. Costs and financing
Spread, commission, overnight financing, charges, currency conversion, dividends, rollover and other adjustments can reduce the result. A strategy that appears profitable before costs may be unprofitable after them.
Swap-free status does not necessarily mean that an overnight position has no charge. Product exclusions, grace periods or fees may apply.
6. Product-specific risks
Forex
Currency pairs can be affected by monetary policy, intervention, capital controls and geopolitical events.
Share CFDs
Earnings, corporate actions, suspension and exchange gaps can create substantial movement. A CFD does not provide voting rights or ownership.
Indices and commodities
Cash adjustments, futures rollover, expiry methodology and underlying-market closures can affect valuation.
Cryptocurrency CFDs
Digital-asset prices can be exceptionally volatile, trade through different hours and experience sharp liquidity changes.
7. Client and behavioural risk
Emotional decisions, overconfidence, revenge trading, concentration, failure to use risk limits and reliance on unverified third parties can materially increase loss. You remain responsible for every instruction placed with valid account credentials.
Past performance, backtests, copy trading, a manager history or educational material do not guarantee future results.
8. Ability to bear loss
Only trade with capital you can afford to lose without affecting essential expenses, debt obligations or long-term financial security. Borrowed funds, emergency savings and money required for living costs are generally unsuitable for speculative leveraged trading.
Before opening an account, consider whether you understand how Forex and CFDs work and whether you can bear the high risk of losing money.