Last reviewed: October 13, 2026
Important: Trading foreign exchange (forex) and contracts for difference (CFDs) carries a high risk of losing money. Leverage magnifies both gains and losses. Some clients may lose their entire deposited capital and, where permitted by the product and legal terms, may face additional obligations. Never assume a particular protection applies in every jurisdiction.
Leverage and margin
With leverage, a relatively small margin deposit can control a substantially larger market position. A small adverse price movement may create significant losses relative to the margin committed. Margin calls, automatic liquidation and rapid changes in margin requirements may occur.
Market and execution risk
Prices may move sharply around economic releases, market closures and geopolitical events. Spreads can widen and orders may execute at a different price from the one requested. Stop-loss orders do not guarantee an exact exit price under all conditions.
Broker and counterparty risk
Protections depend on the trading entity, the applicable regulator, the product and the client classification. Read the contractual documents provided by the company offering the account. Check the legal entity and its permissions independently through the relevant regulator.
Not personal financial advice
This website provides general information, not individualized financial, legal or tax advice. It does not promise profitability or recommend a particular trade. Historical performance, backtests and hypothetical illustrations do not reliably predict future outcomes.
Before making a decision
Consider your financial circumstances, experience, ability to bear losses and local laws. Verify current instrument specifications, costs and risk disclosures at the broker. You can also read our Editorial Policy and Affiliate Disclosure.