Trading financial instruments, including forex, equities, commodities, cryptocurrencies, and synthetic indices, involves significant risk and is not suitable for all investors. The following risks should be carefully considered:
High Risk of Loss: Trading involves the risk of losing more than your initial investment. It is possible to lose all your invested capital, and you should only trade with money you can afford to lose.
Market Volatility: Financial markets can be highly volatile, leading to rapid changes in asset prices. This volatility can result in substantial gains or losses.
Leverage Risks: Trading with leverage amplifies both potential profits and potential losses. High leverage can increase the risk of substantial losses, which may exceed your initial deposit.
Risk of Overtrading: The ease of trading and the availability of various platforms and tools can lead to overtrading, which may increase transaction costs and risk exposure.
Regulatory and Market Risk: Different countries have varying levels of regulatory oversight. Ensure you understand the regulatory environment of your jurisdiction, as it may affect your trading experience and the protection offered.
Technical and Operational Risks: Technical issues, such as platform outages or connectivity problems, can impact your ability to execute trades effectively.
Currency Conversion Risks: If trading in a currency different from your account currency, currency conversion fees and fluctuations can impact your trading results.
Inactivity Fees: Deriv charges inactivity fees after 12 months of no trading activity, which can affect your account balance if it remains inactive.
Before engaging in trading activities, it is essential to carefully review and understand the risks involved. Seek independent financial advice if needed and ensure that you fully understand the terms and conditions of your trading activities.
318
