Contracts for difference (CFDs) is a leveraged product, which means that you only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’ (or margin requirement). While trading on margin allows you to magnify your returns, your losses will also be magnified as they are based on the full value of the position. This mean that you could lose all of your capital, but as the account has negative balance protection, you can’t lose more than your account value.

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