Risk Warning

Risk Warning: CFDs, Rolling Spot FX and Financial Spread Betting are complex instruments and carry a high risk of rapid losses due to leverage. Consider whether you understand how these products work and whether you can afford to take the high risk of losing your money.

Product Definitions

CFDs (Contracts for Difference)

A CFD is a derivative contract between you and us where you speculate on the price movement of an underlying financial instrument without owning the asset itself. You profit or lose based on the difference between the opening and closing prices of your position.

Rolling Spot FX

Rolling Spot FX is an over-the-counter derivative that tracks currency pair movements. Positions automatically roll over each trading day at 10:00 PM GMT, with rollover costs applied based on interest rate differentials between the currencies.

Financial Spread Betting

Spread betting allows you to bet on the direction of market movements. You stake a certain amount per point of price movement. Spread betting is only available in certain jurisdictions and may have different tax implications compared to other products.

Key Risk Categories

Leverage Risk

Leverage amplifies both profits and losses. Small market movements can result in significant gains or losses relative to your initial investment.

Losses can exceed your initial deposit
Higher leverage increases risk exposure
Market volatility is magnified
Margin calls may occur

Market Volatility

Financial markets can be highly volatile, with prices moving rapidly in either direction, especially during economic events.

Sudden price movements
Increased volatility during news events
Weekend and holiday gaps
Economic data releases impact

Margin Calls & Liquidation

If your account equity falls below required margin levels, positions may be automatically closed to prevent further losses.

Automatic position closure
Insufficient margin warnings
Forced liquidation at unfavorable prices
Additional margin requirements

Market & Technology Risks

Technical issues, market disruptions, or connectivity problems can affect your ability to trade or manage positions.

Platform connectivity issues
Market closure or suspension
Slippage during execution
System maintenance periods

Illustrative Loss Scenarios

The following examples demonstrate how losses can occur. These are simplified illustrations and actual trading conditions may vary.

CFD Example - EUR/USD

Scenario:

Long position with €10,000 exposure at 1.0800

Market Movement:

If EUR/USD falls to 1.0750 (-50 pips)

Financial Result:

Loss of €500 (5% of exposure)

Important:

With 10:1 leverage on €1,000 deposit, this represents a 50% loss

Spread Betting Example - FTSE 100

Scenario:

£5 per point bet on FTSE 100 at 7,500 points

Market Movement:

If FTSE 100 falls to 7,400 (-100 points)

Financial Result:

Loss of £500 (100 points × £5)

Important:

Total loss of stake if market moves significantly against position

Product Availability

Important Notice

Financial Spread Betting is only available where legally permitted. Availability depends on your jurisdiction and local financial regulations. Tax treatment varies by personal circumstances and may change. Please consult with a qualified tax advisor regarding your specific situation.

Conclusion: Loss of Capital Risk

Trading CFDs, Rolling Spot FX, and Financial Spread Betting carries a high risk of losing money. You could lose all of your invested capital. These products may not be suitable for all investors. Please ensure you fully understand the risks and seek independent advice if necessary.

Questions About Risks?

If you have questions about the risks associated with our products, please contact our support team:

Email: support@digiventras.com
Phone: +44 1376 809041
Hours: 24/5 support available

This risk warning was last updated: 14/08/2025