Trading CFDs with FNmarkets involves several trading risks:
Leverage Risk: Using leverage means you can trade larger positions with a small amount of money, but this can amplify both profits and losses, potentially leading to significant financial losses.
Market Volatility: Prices of assets can change quickly, causing unexpected losses due to economic events or news.
Liquidity Risk: Some assets may be hard to sell quickly, making it difficult to exit a position at your desired price.
Margin Calls: If the market moves against your position, you may need to deposit more funds. If you can't, your position may be closed automatically at a loss.
Counterparty Risk: CFDs rely on FNmarkets to honor the contract. If the broker has financial problems, you might face losses.
Complexity: CFDs are complex and require good market knowledge. Inexperienced traders may face higher risks.
Costs and Fees: Trading CFDs involves fees like spreads, overnight charges, and commissions, which can reduce your profits.