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Hey, we want to make sure that you know what a CFD is and understand the risks involved so that you can make an informed decision before deciding whether to trade.
A CFD position is not the same as owning the underlying asset. You are speculating whether you think the price will rise or if it will fall.
CFDs are not suitable for a longer term investor, as the fees we charge for holding CFDs may not make this a good value outcome.
You should only trade CFDs if you;
Have experience and knowledge in trading,
Have the time to manage your CFD positions actively,
Understand leverage,
Have a high-risk tolerance,
Are trading with money you can afford to lose.
All CFD positions opened on eToro have a stop-loss feature. This automatically closes your position when it reaches a set price of your choice.
There are times when the stop-loss is not guaranteed, for example, when there are rapid price movements or market closures, which is why active management of your account is strongly encouraged.
Ultimately, around four out of five people lose money when trading CFDs, so please consider carefully as to whether you accept this risk.
If you have any doubts, we suggest you first trade in the free, no-risk demo account and read our Academy educational materials.