Spread bets and CFDs are complex financial instruments that carry a significant risk of rapid financial loss due to leverage. A substantial majority of retail investor accounts experience losses when trading spread bets and CFDs with many providers. It’s critical to fully understand these instruments and assess whether you can withstand the elevated risk of losing your invested capital.
Professional clients engaging in spread bets and CFDs trading also face the possibility of losses exceeding their initial deposits.
Options and futures trading, similarly complex, involve a high degree of leverage and the potential for rapid losses. These instruments are generally not suitable for the majority of investors. Before investing in options or futures, it’s essential to ensure you comprehend their mechanics, the inherent risks, and your capacity to absorb losses that may surpass your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account introduces additional risks beyond fully funded securities purchases. Margin trading, where only a portion of the position cost is financed, can lead to losses exceeding your initial investment. Furthermore, margin trading incurs extra costs and may result in your securities being held as collateral by the lender. This restricts your shareholder rights and your ability to utilize the securities until the margin trade is settled. Thoroughly familiarize yourself with these risks before engaging in margin trading.
The value of shares, ETFs, and other ETPs acquired through share dealing accounts, US options and futures accounts, stocks and shares ISAs, or SIPPs can fluctuate, potentially resulting in returns less than your initial investment. Past performance is not indicative of future results. Certain ETPs involve additional risks based on their structure, and investors should understand these differences before investing.
It’s important to note the entities providing these services. Share dealing and IG Smart Portfolio accounts are offered by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, and spread betting is provided by IG Index Ltd.
IG operates as a trading name for IG Trading and Investments Ltd (registered in England and Wales under number 11628764), IG Markets Ltd (registered in England and Wales under number 04008957), and IG Index Ltd (registered in England and Wales under number 01190902). Their registered address is Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492), and IG Index Ltd (Register number 114059) are authorized and regulated by the Financial Conduct Authority.
The information provided here is not intended for residents of the United States, Belgium, or any country outside the UK, nor is it intended for distribution or use in any jurisdiction where such distribution or use would violate local laws or regulations.
Understanding the risks associated with leveraged trading is crucial, especially when considering markets like Euro In Usd (EUR/USD). Currency pairs, such as the euro against the US dollar, are frequently traded using these leveraged instruments. The volatility inherent in the foreign exchange market, particularly in pairs like EUR/USD, can amplify both potential gains and losses. Therefore, whether you are trading euro in USD or other assets, grasping the complexities and risks of spread bets, CFDs, options, futures, and margin trading is paramount for responsible investing.
