When you trade Forex or CFDs, you're not buying physical currency or assets. Instead, you're making a prediction about whether a price will go up or down. If your prediction is right, you earn a profit. If it's wrong, you may lose some or all of the money you used to open the trade.

You open a trade worth $10,000, but only put in $200 of your own money (this is called margin).
If the market moves in your favor by 5%, your profit is based on the full $10,000—so you gain $500.
But if it moves 5% against you, you lose $500—more than your initial $200.
This is because of leverage, which magnifies both gains and losses.

1. Prices Move Fast

   Markets react quickly to news—like economic reports, political events, or global developments. Prices can change in seconds, and trades can move against you before you have time to react.

2. You Can Lose More Than You Deposit

   Because of leverage, it’s possible to lose more than the amount in your account. If a trade moves sharply against you, you may need to add more funds to cover the loss, or your position will be closed automatically.

3. Not All Stop Losses Are Guaranteed

   A stop-loss helps limit losses by closing your trade at a set price. But in fast-moving markets, the price may “gap” (jump) past your stop level, meaning your trade closes at a worse price than expected. Only guaranteed stops protect against this—and they may have a small cost.

4. Fees and Costs Add Up

   Every trade has a small cost called the spread (the difference between buy and sell prices). Some trades also have overnight fees. These reduce your profits or increase your losses over time.

• Start Small

  Use a demo account first, or trade with small amounts until you’re confident.

• Use Risk Tools

  Set stop-loss and take-profit levels on every trade to manage your risk automatically.
  Don’t Risk More Than You Can Afford to Lose.
  Only use money that won’t affect your daily life if lost—like entertainment or investment funds.
  

• Keep Learning

  Our support team is here to explain anything you’re unsure about—no question is too small.

• A Note on Past Performance

  You may see statements like “74% of retail clients lose money.” This doesn’t mean you will—it means trading isn’t easy, and success comes with knowledge, discipline, and risk management. The goal isn’t to scare you, but to help you prepare.

Trading isn’t a shortcut to wealth—it’s a skill that takes time to develop. We’re here to support you with transparent pricing, reliable tools, and honest information. The better you understand the process, the more control you have over your journey.
If you ever feel unsure, take a step back. Review your strategy, use our educational resources, or speak with our team. Your awareness is your greatest protection