Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

A trader’s investment capital is the portion of financial resources they have available for trading. It could be in the form of money or other assets.

Investment capital definition

A trader’s investment capital is the portion of financial resources they have available for trading. It could be in the form of money or other assets.

Investing is just one of many ways of generating wealth with capital, so investment capital is often a portion of a trader’s full capital resource.

The allocation and use of investment capital is a key part of any trading strategy. Most strategies recommend utilising investment capital in a diverse selection of asset classes and products. Leverage is a way of making investment capital go further, by multiplying profits and losses from the initial deposits for a trade.

 

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