Leverage magnifies gains and losses
CFDs are leveraged products. A small market movement can have a proportionately larger effect on your account, working against you as well as for you.
You should only trade with money you can afford to lose. Retail client accounts benefit from negative balance protection, so you cannot lose more than the funds in your account.
Market risk and volatility
Prices can move rapidly, particularly around economic releases, central bank decisions and market opens. Gaps may occur between one price and the next, and stop orders may be filled at a worse price than requested.
No ownership of the underlying asset
When you trade a CFD you do not own the underlying currency, share, commodity or cryptocurrency. You have no rights to dividends, voting or physical delivery beyond the cash adjustments described in our terms.
Costs and charges
Trading costs include spreads, commissions on some account types and overnight financing (swap) charges. These costs affect your overall returns and are shown in the platform before you trade.
Seek independent advice
Xendore does not provide investment advice. If you are unsure whether CFD trading is right for you, please seek independent financial advice.
Questions about this document? Contact us at support@xendore.com.