Risk Disclaimer

This notice is provided to you by FxNews, an educational platform. It is intended to explain, in a non-technical manner, the nature and risks of trading Contracts for Difference (CFDs). However, it does not disclose or explain the risks and other significant aspects of dealing with CFDs. We outline these risks below and urge you to seek professional advice before trading in CFDs.

1. Understanding CFDs

CFDs are complex instruments with a high risk of losing money rapidly due to leverage. The value of a CFD can fall and rise, which could mean getting back less than you originally put in.

2. Leverage Risk

Trading CFDs on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you and for you. Before trading CFDs, carefully consider your investment objectives, experience level, and risk appetite.

3. Market Volatility

CFD prices are influenced by market volatility, size and type of order, market events, relevant economic indicators, and liquidity. These factors may lead to wider spreads, or “gapping” in prices, thus increasing the risk of an order being filled at a different price than expected.

4. Counterparty Risk

This is the risk that your CFD provider, or the provider’s provider, will not fulfill its obligations to you under the contract. For example, our liquidity providers might not provide us with reliable prices during volatile market conditions. These are risks over which we have no control.

5. FxNews Role

FxNews is an educational platform that does not engage in trading, brokerage services, or relevant trading services. The content provided on FxNews is purely for informational purposes and should not be construed as financial advice. Always consult with a licensed financial advisor before deciding to trade in CFDs.

Conclusion

You should not engage in CFD trading unless you understand the nature of the transaction you are entering into and the true extent of your exposure to the risk of loss. If you are in any doubt about whether CFD trading is suitable for you, please seek independent advice.