This Risk Disclosure Document provides important information about the risks associated with CFD trading. Please read it carefully before opening an account or placing any trades.
NothingHolders Ltd ("the Company") is required by regulation to provide clients with a risk disclosure document outlining the principal risks associated with trading Contracts for Differences (CFDs). This document does not cover all possible risks and you should ensure you fully understand all risks before trading. This document should be read in conjunction with the Client Agreement and Terms and Conditions.
CFDs are complex financial instruments and carry a high risk of loss due to leverage. Losses can be rapid and can equal or exceed your initial deposit. Past performance is not indicative of future results. No information on this website or provided by the Company constitutes investment advice.
CFDs are leveraged products. Leverage means you can open a position with a deposit (margin) that is a fraction of the full value of the position. While leverage magnifies potential returns, it equally magnifies potential losses.
Example: At 30:1 leverage, a $1,000 margin deposit controls a $30,000 position. A 3.33% adverse price movement (which is not uncommon intraday) results in a complete loss of the $1,000 margin. Price movements of 5%, 10%, or more can and do occur, particularly around economic data releases.
Retail clients are subject to regulatory leverage limits: major Forex pairs 30:1, major indices 20:1, commodities 10:1, individual equities 5:1.
The price of financial instruments can rise or fall and can be affected by many factors including economic data releases, geopolitical events, central bank policy decisions, corporate announcements, and overall market sentiment. No analysis or strategy can reliably predict market movements.
If your account equity falls below the required maintenance margin level, you will receive a margin call. You will be required to deposit additional funds immediately or close positions. If you fail to do so, positions will be closed automatically (stop-out) at the prevailing market price, which may be significantly lower than your desired exit price, resulting in substantial losses.
Stop-out levels can be triggered rapidly during periods of high volatility. You may lose all deposited funds in a very short period.
Positions held overnight are subject to financing charges (swaps), which can be significant, particularly for long-held positions. Markets can also gap between close and open, meaning the price at which you can exit a position when markets open may be materially different from the price at close.
Stop-loss orders are designed to limit losses but are not guaranteed. In fast-moving markets or during market gaps, your stop-loss order may be executed at a price worse than specified (slippage). This means your actual loss could exceed the amount implied by your stop-loss level.
During periods of extreme market conditions, such as major economic announcements or market crises, liquidity may be significantly reduced. This can result in wider spreads, delayed execution, or inability to close positions at desired prices.
Electronic trading systems can experience delays, errors, or outages. You should have contingency plans (including phone trading) in case your platform becomes unavailable. The Company is not liable for losses arising from platform outages beyond its control.
If your account base currency differs from the currency of an instrument you trade, your profit or loss will be subject to currency conversion at prevailing exchange rates. Exchange rate movements can increase losses or reduce profits.
Holding multiple positions in correlated instruments does not provide true diversification and can result in all positions being adversely affected simultaneously during market stress events.
CFD trading is not appropriate for all investors. It is intended for clients with sufficient experience and understanding of leveraged financial products. If you are a retail client who does not have experience with leveraged derivatives, you should consider whether CFD trading is appropriate for your circumstances. The Company may decline to offer services to clients who are assessed as lacking appropriate knowledge and experience.
The Company provides execution-only services. Nothing provided by the Company constitutes investment advice, a recommendation to trade, or a solicitation to enter any specific transaction. All trading decisions are made solely by the client.
You may lose all of your invested capital. Only invest money that you can afford to lose completely. Do not trade with borrowed money, funds required for living expenses, or savings intended for other purposes.
Last updated: January 2024. This document is subject to change.