Important information about the risks of trading
Trading in financial instruments, including cryptocurrencies, forex, and Contracts for Difference (CFDs), carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.
Cryptocurrency trading carries specific risks that you should be aware of:
Cryptocurrencies are extremely volatile. Prices can fluctuate significantly within minutes or hours. This volatility can result in substantial gains but also significant losses.
Some cryptocurrencies may have limited liquidity, which can affect your ability to execute trades at desired prices, especially during periods of high volatility.
Cryptocurrencies rely on blockchain technology which, while innovative, may be subject to bugs, cyber attacks, or other technical failures.
The regulatory environment for cryptocurrencies is evolving. Changes in regulations could affect the value or legality of certain cryptocurrencies.
If you lose access to your wallet credentials or if your account is compromised, you may permanently lose access to your cryptocurrency holdings.
Trading on margin and using leverage amplifies both potential profits and potential losses.
With leverage, a small market movement can result in large losses that may exceed your initial deposit. You may be required to deposit additional funds at short notice to maintain your positions.
If your account equity falls below the required margin level, you may receive a margin call requiring you to deposit additional funds. If you fail to do so, your positions may be closed automatically at a loss.
While leverage can increase profits, it equally magnifies losses. Using high leverage increases the risk of losing your entire investment quickly.
Holding leveraged positions overnight may incur financing charges, which can erode profits or increase losses over time.
Financial markets can be highly volatile. Prices can move rapidly due to economic events, news, or market sentiment, leading to significant gains or losses.
During periods of high volatility or low liquidity, prices may "gap" – jumping from one level to another without trading at intermediate prices. This can result in orders being executed at prices different from expected (slippage).
Markets are closed on weekends for most instruments. Events occurring during this time may cause prices to open at significantly different levels on Monday.
When trading CFDs, you are trading with XfersTrade as your counterparty. You are therefore exposed to the risk of our company's financial stability.
Trading systems may experience delays, failures, or errors. This could prevent you from executing trades or managing your positions when needed.
Trading depends on internet connectivity. Any disruption to your internet connection may prevent you from accessing the platform or executing trades.
Despite our security measures, there is a risk of cyber attacks. You should take steps to protect your account credentials and devices.
The regulatory landscape for financial services and cryptocurrencies is constantly evolving:
Trading in financial instruments is not suitable for everyone. You should consider whether trading is appropriate for you based on: