> CFD Trading is Risky

CFD Trading is Risky

Risk Warning

CFD trading carries a high level of risk and may not be suitable for all investors. CFDs are highly leveraged over-the-counter derivatives. You can lose more than your initial deposit and your potential losses may be unlimited.


As with any products that involve the financial markets CFDs are inherently risky. CFD trading is leveraged so whilst it can lead to greater returns on smaller deposits, it is also possible to lose more than your deposit. While stop losses can be allocated to each trade, they may not be guaranteed and will not always be filled at the level you requested in volatile markets due to market gapping or slippage. Investors should also look at the price of commission as many CFD providers have a commission charge.


Anything you put your money into should meet your investment goals and suit your circumstances. Being a leveraged product, CFDs by nature involves risk.

CFDs are not suitable for everyone. My message to investors is this: if you don’t understand contracts for differences, then do not invest.

No one can guarantee the performance of any financial product. You can lose all of or more than the money you put in if something goes wrong.

You are taking a considerable risk if you put all your money into one type of investment (for example, trading CFDs). Spreading your money between different types of investments (‘diversification’) reduces the risk of losing everything.


This educational material does not constitute financial product advice and does not take into account your investment objectives, financial situation or particular needs.

Trading carries a high risk and you should never trade with money you can’t afford to lose. The contents of this CFD trading guide are for educational purposes and should not be considered in any way as investment advice. Ultimately you, the trader, must take responsibility for your own trading decisions.

CFDs involves substantial risk of financial loss. is designed as a reference for stock market traders and a presentation of trading ideas. Users are advised to carefully consider whether trading CFDs is appropriate for them, in respect of their experience, objectives, financial resources and other circumstances.

Any opinions and recommendations on are given in good faith, but no warranties or guarantees are made as to the accuracy of any of the information provided on this website and all users accept the data and information presented at their own risk. Although every effort has been made by the author to ensure accuracy the content of this CFD guide cannot be guaranteed as accurate into the future. The Author accepts no liability whatsoever for losses or damages resulting either directly or indirectly from the use of the information contained in this guide.

Finally, anybody considering adding CFDs to their trading armoury should make sure that they understand the risks associated with this margin traded product. As with any financial product, the risks will be significantly higher if you don’t take the time to understand the product.

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