Financial products such as Spread betting, Forex and CFDs, are high risk products that involve trading on leverage, so may not be suitable for everyone. You may only be required to place a deposit that represents a small portion of the total value of your trade. This means that you could lose sums far greater than your initial deposit. If you are unfamiliar with leveraged products or are unsure of the risks involved, then it is recommended you seek advice from a qualified professional.
Leveraged products can be volatile, if the price of a market moves against you, your broker may require additional funds to cover the losses on your position. If you do not provide the funds in sufficient time then your position may be closed or liquidated on your behalf and any profit or loss realised. Brokers have a variety of different policies regarding margin calls and liquidation, it is recommended you familiarise yourself prior to registering and trading with any Broker.
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