Trading Forex and CFDs carries a high level of risk and is therefore not suitable for every investor. Before deciding to participate in forex trading, you should carefully consider your investment objectives, level of experience and risk tolerance. The most important thing is, if you can't afford the loss, please don't invest rashly.
Any over-the-counter forex transaction carries considerable risks, including (but not limited to) security funding requirements, credit reliability, limited legal protection, and market volatility that may significantly affect the price or trading volume of a currency or currency pair.
Safe Funding and Safe Funding Requirements
In order to trade CFDs or Forex, you need to deposit a certain amount of funds as safe funds. Safe funds generally refer to a relatively small fraction of the total contract value. For example, a contract with a leverage ratio of 1% requires 1% of the contract value as a security fund. This means that a small price change may lead to a larger change in the value of your trading contract, which may be beneficial to you or cause you a significant loss.
You may lose your initial capital and be required to add additional safety funds to maintain your position. If you fail to meet the safety fund requirements, your open positions will be forced to close out, and the resulting losses will be borne by you.
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