Frequently Asked Questions

A Contract for Difference (CFD) is a financial derivative that allows you to speculate on the price movement of an underlying asset — such as a currency pair, stock, commodity, or index — without actually owning that asset.

When you open a CFD position, you agree to exchange the difference in price between when you open and when you close the position. If the price moves in your favour, you receive the difference; if it moves against you, you pay the difference. This means losses can equal or exceed your initial investment.

CFDs are leveraged instruments, meaning you only deposit a fraction of the full trade value (the margin), while your exposure is to the full position size.

CFD trading carries significant financial risks, including:

• Leverage Risk: Leverage amplifies losses as well as gains. A small adverse price movement can result in losses exceeding your margin deposit.
• Market Risk: Asset prices can move rapidly and unpredictably due to economic data, geopolitical events, and market sentiment.
• Margin Call Risk: If your account equity falls below the required margin level, positions may be closed automatically at a loss.
• Overnight Risk: Positions held overnight are exposed to market gaps at open and carry financing charges.
• Liquidity Risk: During extreme market conditions, you may not be able to close positions at the desired price.

A significant proportion of retail investor accounts lose money when trading CFDs.

Yes. You can lose money — including all of your invested capital — when trading CFDs.

A significant proportion of retail investors who trade CFDs experience financial losses. Due to leverage, losses can accumulate rapidly. While retail clients benefit from negative balance protection (preventing your balance going below zero), you can still lose 100% of your deposited funds.

You should never trade with money you cannot afford to lose entirely. CFD trading is not appropriate for all investors, and you should assess whether it is suitable for your personal financial situation before trading.

No. CFD trading is not suitable for all investors.

CFDs are complex, high-risk instruments primarily designed for experienced traders who understand how leverage works and can accept the associated risk of capital loss. They are not suitable for:

• Investors who cannot afford to lose their invested capital
• Those without prior experience of leveraged financial products
• Individuals seeking low-risk investment returns
• Those investing essential living or savings funds

Before opening an account, you will be asked to complete an appropriateness assessment to help determine whether CFD trading is appropriate for you.

Leverage allows you to control a larger market position with a smaller deposit. For example, at 30:1 leverage, you can control a €30,000 position with only €1,000 of margin.

Leverage amplifies losses equally as it amplifies gains. At 30:1 leverage, a 1% market move results in a 30% change in your margin value. A 3.33% adverse move results in the total loss of your margin deposit.

Leverage limits for retail clients are regulated: maximum 30:1 for major Forex pairs, 20:1 for major indices, 10:1 for commodities, and 5:1 for stocks.

Margin is a deposit required to open and maintain a leveraged position. There are two key margin levels:

• Initial Margin: The minimum deposit required to open a position (e.g., 3.33% for a 30:1 leveraged position).
• Maintenance Margin: The minimum equity level required to keep positions open. If your account equity falls below this level, a margin call occurs.

If you receive a margin call and do not deposit additional funds or close positions, your positions may be automatically closed (stopped out) at a loss. This is called a stop-out.

As a regulated financial services provider, NothingHolders is required to provide retail clients with specific protections, including:

• Segregated Funds: Client funds are held in segregated bank accounts, separate from company funds
• Negative Balance Protection: Retail clients cannot lose more than their total account balance
• Leverage Limits: Maximum leverage caps per product type
• Complaints Procedure: Access to a formal complaints process and potentially an ombudsman service

Regulation provides procedural protections but does not eliminate the risk of financial loss from trading activities.

We take all complaints seriously. To make a formal complaint:

1. Submit your complaint in writing to our complaints team at [email protected]
2. We will acknowledge receipt within 5 business days
3. A full investigation and response will be provided within 8 weeks
4. If unsatisfied with our response, you may escalate to the relevant regulatory ombudsman

See our full Complaints Procedure for details.