CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What leverage do you recommend?

As a general rule of thumb, we recommend limiting total account leverage to a maximum of 20:1. For example, if you have an account balance of $10,000, you could trade a maximum position size twenty times larger than your account balance. In this example, 20 X $10,000 = 200,000 (200k total for all positions).

At 20:1 leverage, a market movement of 1% will increase or decrease your account balance by roughly 20%. You can use this simple calculation to determine your risk tolerance. For example, someone who is less risk tolerant may want to leverage their account only five times so that a 1% market movement means a 5% increase or decrease in the account balance.

While greater leverage can increase the magnitude of your gain, it can also increase the magnitude of your loss and chances of receiving a margin call.