UNDERSTAND THE EXPOSURE

A clear view
of the risks.

CFDs are complex leveraged products. They are not suitable for everyone, and you may lose some or all of your investment.

MEXNANCE / UNDERSTAND THE EXPOSURE

Understand
your exposure.

Leverage

Liquidity

Loss capacity

01

Leverage magnifies outcomes

Leverage increases exposure relative to the margin you provide. Both favourable and unfavourable market moves have a larger effect on your account.

02

Markets can move abruptly

Liquidity changes, price gaps and volatility can affect execution. Stop orders do not guarantee an execution price in every market condition.

03

Make an informed decision

Understand the instrument, total costs, margin rules and your capacity to bear loss. Seek independent advice where appropriate.

BEFORE EVERY POSITION

Four questions
worth answering.

01

What is the full exposure?

Consider the position value, not only the amount of margin reserved.

02

What if the market gaps?

A fast or discontinuous market can affect execution and available liquidity.

03

What are the total costs?

Account for the spread, commissions and any ongoing financing charges.

04

Can I bear the loss?

Assess the decision against your circumstances, experience and financial capacity.

YOUR NEXT MOVE

A clearer next step.

Explore your account options, understand the conditions and take your next step with MEXNANCE.

MEXNANCE / SEARCH