The contracts for difference (CFDs) offered by SP Markets are high risk investments. Do not invest in derivative financial products like CFDs if you cannot bear the risk of losses.
If the price, value, or level of the underlying index, equity, commodity, financial product, or other asset changes, you may suffer losses. In particular, and unlike most other kinds of financial products, because your positions are leveraged you may end up owing significant amounts of money and your losses may significantly exceed your original margin.
Where there are rapid changes in market conditions "stop losses” and other automatic orders may not work and your losses may be greater than anticipated.
SP Markets may require you to make additional margin payments to contribute towards your future obligations under the CFDs. These payments may be required at short notice and can be substantial.
When you enter into CFD with SP Markets, you are exposed to a risk that SP Markets cannot make payments as required. If SP Markets runs into financial difficulty the margin you provide may be lost and you may not be able to recover profits you have made.
We recommend that you read our client agreement and seek any necessary information and independent advice before starting to trade.