Spread bets and CFDs risks
All trading activity is risky, so it is always important to manage your risk accordingly.
Spread bets and CFDs are leveraged derivatives. Trading using leverage means that you only have to commit a deposit – known as margin – to take your position. While margin decreases your initial outlay, it also amplifies your possible profits and losses to the full value of your trade.
Learn more about the impact of leverage on your trading
Other risks of spread betting and CFD trading include sudden or losses that are larger than expected and slippage. These can both occur as a result of volatility.
It is important that you consider all risk involved before taking any position.
Discover how you can manage your risk