Risk Disclosure: Leveraged Forex and CFD Trading
What you should understand before you trade with borrowed exposure on any platform reviewed on this site.
Go on to our partnerWhat does leverage actually do to my money?
Suppose you put up 1,000 euros of your own money and a broker lets you control a position worth 30,000 euros. That is leverage of 30 to 1. If the market moves 1 percent in your favour, you gain 300 euros on your 1,000. If it moves 1 percent against you, you lose 300 euros. The same 1 percent move produces the same 300 euros in both directions. Leverage does not create an edge. It only makes the result of being right or wrong larger relative to the cash you committed.
The arithmetic cuts deeper than most people expect. A 3.33 percent adverse move on a 30 to 1 position wipes out the entire 1,000 euros. A smaller move can take you close to a margin call, at which point the broker may close the position for you at the worst possible moment. Losses can arrive faster than you can react, and on some account types they can exceed your initial deposit.
Nothing in this page is advice, and nothing on this site is a recommendation to trade. The site reviews a broker for readers; it does not open accounts, hold money, or execute orders.
Why can my stop loss fail to protect me?
A stop loss is an instruction, not a guarantee. Prices do not always trade at every level on the way down or up. Markets gap over weekends, around central bank decisions, and during unexpected news. When a price jumps from one level to a much lower one, your stop may be filled at the next available price rather than the one you set. The difference between the two is slippage, and on a leveraged position it can be substantial.
News-driven volatility makes this worse. Spreads widen, liquidity thins, and order execution can be delayed exactly when you most want to exit. A strategy that looks calm in quiet hours can behave very differently in the minutes after a major economic release.
Because leverage magnifies the effect of every price change, these execution realities matter more than they do in unleveraged investing. Budget for the possibility that your exit is worse than planned.
Do past results tell me anything about the future?
Very little. A track record, a backtest, or a good month on a demo account describes what happened under conditions that will not repeat in the same form. Markets change regime, volatility clusters and disperses, and a method that worked in one period can fail in the next without any warning.
Past performance is not a reliable indicator of future results. This is true for any broker, any strategy and any instrument, and it applies equally to the reviews published on this site. A review describes features and terms; it cannot tell you what your own results will be.
Treat any historical figure you encounter, including your own, as a description of the past and nothing more.
How much should I risk, and who protects me if something goes wrong?
Only trade with money you can afford to lose entirely. Not money set aside for rent, school fees, medical costs or debt repayment. If losing the full amount would change your financial position in a way you cannot absorb, the position is too large for you, whatever the leverage on offer.
Protection differs by jurisdiction and by entity. Investor compensation schemes, negative balance protection, segregation of client funds and dispute-resolution routes depend on which legal entity holds your account and where it is licensed. The same brand can operate through different entities with different safeguards, and the rules that apply to a client in one country may not apply to a client in another. Before depositing, check which entity your account would be with and what protection, if any, attaches to it.
This site is an independent editorial resource. It is not the broker it reviews, it is not affiliated with that broker, and it does not provide financial services, accounts, deposits or advice. For questions about this disclosure, use the contact form on this site.
