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Trading in foreign exchange (“Forex”) and Contracts for Difference (CFDs) on margins entails high risk and is not suitable for all investors. Past performance is not an indication or guarantee of future results. In this case, as well, the high degree of leverage can act both against you and for you. Before you decide to invest in foreign exchange or copy-trading strategies, you should carefully assess your investment objectives, level of experience, financial possibilities, and willingness to take risks.
There is a distinct possibility that you will lose your initial investment partially or completely. Therefore, you should not invest any funds that you cannot afford to completely lose in a worst-case scenario. You should also be aware of all the risks associated with foreign exchange trading and contact an independent financial advisor in case of doubt.
Leverage enables traders, using a relatively small amount of money, to take a position that is many times the initial investment. This leverage effect can work both in your favor and to your detriment. The Forex market opens up the possibility to utilize this leverage effect to a high degree; at the same time, however, it also opens up the risk of experiencing high losses. Please trade with caution when you use leverage in trading or investing.