Risk Disclosure
Trading leveraged CFDs carries a high risk of loss. This page sets out those risks in full, without softening them.
The warning, in full
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. XX% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Leverage risk
Trading on margin means a small movement in the underlying price produces a proportionally much larger movement in your account. The same mechanism that multiplies a gain multiplies a loss, and it can exhaust the margin supporting a position in a single session. Leverage is not a feature that improves outcomes; it is an amplifier applied to whatever outcome your strategy already produces.
Market risk
Prices are driven by factors no participant controls: monetary policy, economic data, corporate results, political events, natural disasters and shifts in sentiment that resist explanation. Markets can move further and faster than historical ranges suggest is plausible, and they can move against a well-reasoned position for longer than the position can be financed.
Gapping and stop orders
A stop-loss order becomes a market order when triggered and fills at the next available price. Where the market gaps — across a weekend, a scheduled announcement or an unscheduled shock — that price can be significantly worse than the stop level. A stop limits your exposure to ordinary movement. It does not guarantee your loss.
Liquidity risk
In stressed or thin conditions the volume available at or near the quoted price can fall sharply. Spreads widen, slippage increases and closing a position may cost materially more than opening it did. Liquidity is deepest precisely when you are least likely to need it urgently.
Financing and holding costs
Positions held past the daily rollover are debited or credited a financing amount. Over weeks and months this accumulates and can turn a position that is right about direction into one that is unprofitable overall. Financing must be part of the plan before entry.
Technology and execution risk
Trading depends on internet connectivity, third-party platforms and data feeds. Any of these can fail. We maintain redundant infrastructure, but no broker can guarantee uninterrupted access, and you should have a way to reach us — and to close a position — if your primary platform becomes unavailable.
Currency risk
Where an instrument is denominated in a currency other than your account currency, your result is affected by the exchange rate as well as by the instrument. A correct view on the instrument can still produce a loss after conversion.
No advice is given
Premium FX does not provide investment, tax or legal advice and makes no personal recommendations. Information on this site is general in nature, takes no account of your circumstances, objectives or financial situation, and should not be relied upon as a basis for any decision. If you are unsure whether these products are appropriate for you, take independent professional advice.
Only risk what you can lose
Do not trade with money you need for living costs, debt repayment or any obligation with a date attached. Treat the amount you deposit as capital you can afford to lose entirely, because that is the risk you are accepting.