Tag: risks

Mitigating the risks of CFD trading

Although there are many variations, two dominate CFDs on shares and indices (shares CFDs) and currency pairs (currency CFDs). The former allows you to make money when share prices go up or down, while currency CFDs allow shorting currencies which can be very profitable if the price of a currency goes down. Both types of CFDs can be used to make short or long term investments with risks and rewards that are potentially unlimited.

Are CFDs regulated in Europe?

While most assets have a CFD pair, there’s been a proliferation in some particularly ‘high risk’ assets such as cryptocurrencies which have pushed regulators into action. As a trader, you should be aware of the benefits and limitations of CFD trading. In January 2015, the European Securities and Markets Authority (ESMA) issued a warning about the risks of cryptocurrency CFDs. Regulators have issued multiple warnings across Europe, with Denmark being …

Categories: Business

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