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Risks


Are CFDs dangerous?

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.
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What is the difference between a normal stop and a guaranteed stop?

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.
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What is the counter party risk for CFDs?

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.
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What is margin and what is a margin call?

February 12, 2016

CFDs are leverage products that offer you the possibility of trading with more money than your initial investment. The money that you have to put in personally is called margin.
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