Tradeallcrypto provides access to a range of trading products including complex derivative products that are traded on margin. Trading derivative products carries a high level of risk and may not be suitable for all investors.
Before trading complex derivative products such as CFDs and FX, you should consider whether you fully understand how they work, and the risks involved and seek independent financial advice if necessary. You should also ensure that you have adequate financial resources to bear such risks. You should not invest money that you cannot afford to lose.
CFD’s and Margin FX Contracts are leveraged products meaning they require an initial deposit or “margin” to be deposited upfront in order for a position to be opened. The margin represents a small deposit of the overall value of your position. The minimum amount of margin required to open a trade will typically depend upon the underlying instrument you are trading in.
Leverage enables you to gain large exposure to a financial market whilst only putting up a relatively small amount of your capital. This effectively magnifies the scope for gains but also losses. Whilst leverage can work in your favour it can also work against you. Small movements in the market could lead to a proportionately much larger movement in the value of your investment. There is a high risk of losing money rapidly should these small movements go against your position(s). It is advised that risk mitigating tools such automatic stop losses are applied to positions to minimise potential losses.
CFD’s are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.
Trading in cryptocurrency CFDs involves significant risks, in addition to the general risks associated with transactions in CFDs. Cryptocurrencies are virtual currencies which are not issued or backed by a central bank or government. They can experience significant price volatility, which in combination with leverage, can place a significant risk of loss to your capital. You should be aware of the risks involved and fully consider whether investing in cryptocurrency CFDs is appropriate for you.
Past and Future Performance
Past performance of any investment is not a guarantee of future results. The value of investments can fall as well as rise and you could get back less money than initially invested. Similarly, any forecasts provided from analytical estimations of financial market situations should not be seen as a reliable indicator of future performance.
Transactions in Foreign Exchange contracts carry a high degree of risk, and may not be suitable for all investors. The ‘gearing’ or ‘leverage’ often obtainable in Foreign Exchange trading means that a relatively small movement in the market can result in a proportionately larger movement in the value of your investment. Before deciding to trade foreign exchange, you should carefully consider whether you have the appropriate level of experience and risk appetite. You could sustain losses of some or all of your initial investment and therefore you should not invest more money than you can afford to lose.
Transactions in futures involve the obligation to make, or to take delivery of the underlying asset of the contract at a future date, or in some cases to settle your position with cash. They carry a high degree of risk. The ‘gearing’ or ‘leverage’ often obtainable in futures trading means that a small deposit or down payment can lead to large losses as well as gains. It also means that a relatively small movement in the market can lead to a proportionately much larger movement in the value of your investment, and this can work against you as well as in your favour.