The risks of trading forex and CFDs, in plain terms.
We offer leverage up to 1:500. With 1:100 leverage, a 1% price move equals a 100% change in your position value. Leverage amplifies both profits AND losses.
Currency, commodity, and CFD prices can move sharply in seconds. News events (NFP, CPI, central bank decisions) cause volatility. Stop-loss orders are not guaranteed and may execute at worse prices during gaps.
During low-liquidity periods (weekends, holidays, news), spreads widen and slippage increases. You may be unable to close positions at expected prices.
You trade against Otto Trade as counterparty. We mitigate this by holding client funds in accounts separate from company funds.
Technology failures (your internet, our servers, the MT4 platform, payment processors) may prevent you from opening or closing positions. We are not liable for these.
Profits and losses in your trading account are denominated in EUR. If you fund in another currency, exchange rate fluctuations affect your balance.
Cryptocurrency CFDs are highly volatile (often 10%+ daily moves), trade 24/7, and may have wider spreads.
You are responsible for declaring trading profits to your tax authority. We do not provide tax advice.
Nothing on this site or in our communications is investment advice. Trade only based on your own analysis, or consult a licensed financial advisor.
Forex and CFDs may not be suitable for all investors. Consider your investment objectives, experience level, and risk appetite before opening an account.