Risk of Trading CFDs

Remember CFDs are a type of derivative product based on underlying assets that can fall substantially as well as rise substantially, thus you can incur substantial losses as well as substantial gains when investing in CFDs. Derivatives are geared investment products, thus this increases the chances of substantial gains on an investment and equally increases the chances of substantial losses on an investment! CFDs are not ideal for private investors whom neither have substantial experience nor the time to monitor their CFD investment.

Notably, the private investor should remember that CFDs are not covered by stock exchange rules and CFDs are 'off-exchange' products.

The geared nature if margin trading markets means that both profits and losses can be magnified and you could incur large losses if the market moves against you.

CFD Trading is less suited to the long term investor because if you hold an open CFD position over a long period of time the costs incurred increase and it may be more beneficial to have bought the underlying asset.
Print this page Tell A Friend Add to Favorites Contact Us 
* The high degree of leverage that is obtainable in the trading of off-exchange FX transactions can work against you as well as for you. Leverage can lead to large losses as well as gains.
** InterForex is compensated through the difference between the buy and sell prices.

Please be advised, the services and products described on and offered by InterForex SA are not being offered within Canada, Australia or the United States and not being offered to U.S., Australian and/or Canadian residents or citizens, as defined under applicable law. 

Interforex Inc. and its products and services offered on the site are NOT registered or regulated by any U.S., Canadian or Australian regulator, including FINRA, SEC,