Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Is there more risk involved in trading a CFD over trading the underlying asset?

April 26, 2017ASSET CFD involved risk trading underlying

0

Posted

Is there more risk involved in trading a CFD over trading the underlying asset?

1 Answer

0

Posted

Trading with higher leverage means there is a greater risk of loss, as well as potential for profit. Depending on the amount of leverage used, small moves in a CFDs price could generate significant changes in an account balance.