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.

Shortfall risk definition

Shortfall risk is the possibility that you may not reach the investment target that you initially set out to. Previous performance does not guarantee future returns, so you may fall short of your original forecast. 

Shortfall risk definition

Shortfall risk is the possibility that you may not reach the investment target that you initially set out to. Previous performance does not guarantee future returns, so you may fall short of your original forecast. 

Shortfall risk can be partially mitigated by investing over the longer term, as a ‘bad year’ will have less of an impact on the longer investment. Potential shortfall risks can also be combatted by diversifying a portfolio, as this decreases the systemic risk. However, systematic risk will still remain.

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