Important Risk Warning

Please read this carefully before trading

Trading rolling CDFs involves substantial risk of loss and may not be suitable for all investors. You should consider whether you understand how CDFs work and whether you can afford to take the high risk of losing your money.

1. General Risk Warning

Trading in rolling Contracts for Difference (CDFs) involves significant risks and may result in the loss of your invested capital. These products are complex financial instruments that use leverage, which can magnify both gains and losses.

You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.

2. Key Risks

Leverage Risk

CDFs are leveraged products, meaning you can lose more than your initial deposit. A small market movement can lead to proportionally larger losses.

Market Risk

Market volatility can cause rapid price movements that may result in significant losses. Markets can move against your position unexpectedly.

Liquidity Risk

In volatile markets, it may be difficult to execute orders at desired prices, potentially resulting in larger losses than anticipated.

Gap Risk

Markets can gap or jump between price levels, especially during market openings or after significant news events, potentially triggering large losses.

3. Rolling CDF Specific Risks

  • Rolling Costs: Positions held overnight may incur financing charges that can accumulate over time and affect profitability.
  • Spread Costs: The difference between bid and ask prices represents a cost that must be overcome before achieving profitability.
  • Currency Risk: If trading instruments denominated in foreign currencies, exchange rate fluctuations can affect your returns.
  • Counterparty Risk: As CDFs are derivative products, you're exposed to the credit risk of the broker as your counterparty.

4. Risk Management Tools

While trading involves inherent risks, Diginexor provides several tools to help manage your exposure:

  • Stop Loss Orders: Automatically close positions when losses reach a predetermined level
  • Take Profit Orders: Lock in profits when favorable price levels are reached
  • Negative Balance Protection: Protects you from losing more than your account balance
  • Real-time Risk Monitoring: Track your exposure and margin requirements in real-time
  • Educational Resources: Access training materials to improve your trading knowledge

5. Suitability Assessment

Before trading CDFs, consider whether you:

  • Have sufficient knowledge and experience with leveraged financial products
  • Understand how CDFs work and the associated risks
  • Can afford to lose your entire investment without affecting your lifestyle
  • Have realistic expectations about potential returns and losses
  • Can dedicate adequate time to monitor your positions
  • Have a clear trading strategy and risk management plan

6. Professional Advice

If you are unsure about the suitability of rolling CDF trading, we strongly recommend seeking independent financial advice. Professional advisors can help assess whether these products align with your financial situation and investment objectives.

7. Regulatory Information

Diginexor operates under the following regulatory framework:

  • FCA Authorization: Brokersure Ltd (Firm Reference Number: 501719)
  • MiCA License: GOin SAS (License Number: 894500LM6DICD790FQ34)
  • Client funds are held in segregated accounts with tier-1 banks
  • Compliant with MiFID II investor protection regulations

Final Warning

This risk warning does not disclose all the risks associated with rolling CDF trading. You should not engage in trading unless you understand the nature of the contracts you are entering into and the extent of your exposure to risk.

By opening an account with Diginexor, you acknowledge that you have read, understood, and accepted all the risks outlined in this warning.