Trading CFDs carries considerable risk of capital loss. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
October 11, 2016
Several theories have emerged about why the British pound tumbled from about $1.26 against the US dollar to about $1.18 in just two minutes on Friday morning, but we may never know the precise reason despite the Bank of England looking into the cause.
Foreign exchange markets are complex. There are many trading systems operating in the market across time zones and there’s no single collector or provider information.
The crash happened just after midnight London time, when liquidity in forex markets is typically low. Forex trading in Asia is spread across many key centres like Tokyo, Hong Kong, Singapore and Sydney. But low liquidity itself isn’t a cause for a so-called “flash crash”.
April 21, 2020
CFDs are digital derivatives whose value depends on different assets. They have several important advantages over ordinary stocks. Here are the basics.
March 10, 2016
You regularly read about the dangers of CFDs. The leverage effect can cause you to lose a lot of money. But you can keep the risk fully under control; therefore CFDs do not have to be dangerous at all.
February 26, 2016
You must always protect a new CFD position with a stop. This way you know the maximum amount of your loss beforehand. But only with a guaranteed stop can you be really sure of the exit rate.
February 16, 2016
A CFD is a 'contract for difference' between you and your broker. You choose the shares, indices, currency pairs or raw materials you want to buy or shorten and your broker finances your transaction. So, the broker is your counter-party.