Understanding the Risks of CFD Trading with ICL Markets
CFD (Contract for Difference) trading requires a thorough assessment of your risk tolerance, especially with significant amounts of capital involved. For individuals with a limited investment background or a low capacity for managing losses, CFD trading may present too high a risk. Typically, trading stocks without leverage is less risky compared to the leveraged nature of CFDs.
The inherent market volatility of CFD trading significantly adds to its risk profile. These risks are further heightened by the use of leverage (margin trading).
Before embarking on CFD trading, it’s critical to recognize the real possibility of losing your entire investment. Ensure that the capital you allocate for CFD trading is money you can afford to lose, without endangering your financial well-being. It is paramount to grasp the full extent of risks involved in CFD trading ahead of starting. We strongly recommend seeking the counsel of an independent, qualified, and licensed financial advisor before engaging in CFD trading.
ICL Markets bears no responsibility for any losses or damages arising from CFD trading activities, which include but are not limited to:
- Direct or indirect damages.
- Special, consequential, or incidental damages.
Following the investment strategies of others, even those proficient, carries significant risks. Trading on any platform, including ICL Markets, involves risks tied to following traders who may lack the necessary experience or expertise. Individual traders’ personal goals and financial circumstances vary, with some being more capable of handling the risks associated with CFD trading than others.