Risk Disclosure for Leveraged Forex and CFD Trading
Read this before you open a leveraged position based on anything you read on this site.
Continue to our partnerUnderstand what you are risking
If you are reading this site, you are probably comparing brokers before you fund an account, or you already trade and want a second opinion on XTB. Either way, the decision in front of you is not a small one. Leveraged forex and contracts for difference are complex products, and most retail accounts that trade them lose money. That is not a warning added for legal cover; it is the ordinary outcome for a large share of private traders.
Treat every sum you transfer to a trading account as money you can afford to lose in full, without changing how you live. Do not use rent, school fees, emergency savings or borrowed money. If losing the entire balance would force you to borrow or sell something you need, the amount is too large.
This site is an independent editorial resource. It reviews XTB for readers in Pakistan. It is not the broker, it is not affiliated with the broker, and it does not open accounts, hold deposits, place orders or give financial advice. Anything you do with a broker is between you and that broker.
Do not rely on past results
Charts, historical performance figures and screenshots of past trades describe what already happened. They do not forecast what comes next. A strategy that worked through one market cycle can fail in the next, and a record of past gains says nothing certain about the return you will see.
Be equally careful with your own history. A run of winning trades can reflect favourable conditions rather than skill, and it can encourage position sizes that a single adverse move will erase. Judge any approach by how it behaves in losses, not by its best month.
See how leverage cuts both ways
Leverage lets you control a position larger than the money you deposit. It magnifies the effect of every price movement on your account balance, in both directions. A small move in your favour can produce a large gain relative to your deposit; an equally small move against you can produce a loss of similar scale, and that loss can exceed what you initially put in.
Because the multiplier applies to the full position, losses can arrive faster than beginners expect. Size positions so that an ordinary adverse day does not remove your ability to keep trading, and decide in advance how much of your balance you are willing to expose on any single idea.
Account for spreads, financing and running costs
Trading is not free, even when a commission is not shown separately. The spread between the buying and selling price is a cost you pay on entry, and it is wider in fast or thin markets. Positions held overnight are typically charged financing, which can add up over weeks and months and works against small, slow-moving trades.
Other charges may apply depending on the instrument and how you trade. These costs are deducted whether you win or lose, so frequent trading with tight targets can leave you paying more in costs than you gain from price movement. Read the broker's fee schedule before you trade, and model costs into any plan.
Prepare for gaps, slippage and margin calls
Prices do not always move smoothly from one level to the next. Around news releases, market opens and weekends, a market can jump past the level you set, so a stop-loss may be filled at a worse price than you chose. This is slippage, and in a gap your loss can be larger than the amount you intended to risk.
When your account equity falls below the required margin, the broker may issue a margin call and then close positions automatically to protect the remaining balance. Automatic closure can happen without further notice, at a time you did not choose, and can lock in a loss. Keep spare margin, avoid stacking positions that all depend on the same move, and never assume you will have time to react before the platform acts.
If you need to reach this site, use the contact form on this site. Nothing here is advice, and no page on this site replaces your own judgement or the documents the broker provides.
