Glossary of trading
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CFD
Forex
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Investment Risks and Considerations
The risk indicator assumes that you may not be able to buy or sell your CFD at the price you wanted due to volatility of the market or you have to buy or sell your CFD at a price that significantly impacts how much you get back. There is no recommended or minimum holding period for this product. You must maintain sufficient margin in your account to keep your positions open. Trading on margin means you could quickly lose the amount invested.
CFDs (Contracts for Difference) are packaged retail investment products (PRIIPs) within the meaning of Regulation (EU) No 1286/2014. They are complex derivative instruments: you do not own the underlying asset.
CFDs are leveraged, which means that small price movements can lead to large losses. Prices can change rapidly, including outside trading hours. Exchange rate fluctuations also affect your results. Trade Nation Europe is the counterparty to your trades, so you are exposed to the risk of the firm defaulting. Spreads, overnight financing costs and other charges reduce your return. Technical failures may delay or prevent the execution of orders.
To protect retail investors, and pursuant to Article 2 of CMVM Regulation No. 5/2019, Trade Nation Europe provides the following protections:
- Leverage limits: Leverage ranges from 30:1 to 2:1, depending on the underlying asset.
- Margin close-out: Positions are closed out when the funds in your account, plus unrealised profits, fall to 50% of the initial margin required.
- Negative balance protection: You will never lose more than the funds deposited in your CFD account, although you may lose them in full.
- No incentives: No bonuses, payments or other benefits are offered in connection with CFD trading.
Before investing, read the Key Information Document (KID) for each CFD. The KID sets out the product's features, risks, costs and performance scenarios. KIDs are available, in Portuguese
The legal stuff
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74–89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trade Nation is a trading name of Trade Nation Europe Empresa de Investimento, S.A. is a Public Limited Company, authorised and regulated in Portugal by the Comissão do Mercado de Valores Mobiliários (CMVM) with the licence number 601, and is a company registered in Portugal with the number 517 156 091. Our registered office is Regus Business Center Lda, Escritório 203/204, Praça Marquês de Pombal 14, 1250-162 Lisboa.
Trade Nation is a trading name of Trade Nation Financial UK Ltd, a financial services company registered in England & Wales under company number 07073413, is authorised and regulated by the Financial Conduct Authority under firm reference number 525164. Our registered office is 14 Bonhill Street, London, EC2A 4BX, United Kingdom.
Trade Nation is a trading name of Trade Nation Australia Pty Ltd, a financial services company registered in Australia under number ACN 158 065 635, is authorised and regulated by the Australian Securities and Investments Commission (ASIC), with licence number AFSL 422661. Our registered office is Level 17, 123 Pitt Street, Sydney, NSW 2000, Australia.
Trade Nation is a trading name of Trade Nation Ltd., a financial services company registered in the Bahamas under number 203493 B, is authorised and regulated by the Securities Commission of the Bahamas (SCB), with licence number SIA-F216. Our registered office is No. 3 Bayside Executive Park, West Bay Street & Blake Road, Nassau, New Providence, The Bahamas.
Trade Nation is a trading name of Trade Nation Financial Markets Ltd, a financial services company registered in the Seychelles under number 810589-1, is authorised and regulated by the Financial Services Authority of Seychelles (FSA) with licence number SD150. Our registered office is CT House, Office 6B, Providence, Mahe, Seychelles.
Trade Nation is a trading name of Trade Nation Financial (Pty) Ltd, a financial services company registered in South Africa under number 2018 / 418755 / 07, is authorised and regulated by the Financial Sector Conduct Authority (FSCA), with licence number 49846. Our registered office is 19 9th Street, Houghton Estate, Johannesburg, Gauteng, 2198 South Africa.
The information on this site isn’t directed at residents of the United States, Canada or Belgium, and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.