Understanding CFDs
CFDs are a leveraged financial trading product, which essentially means you are trading on margin. Leveraged trading allows an investor to provide only a small upfront investment in order to open a much larger position. This means rather than paying the full value of the position, you only need to pay a percentage of the position.
Trading CFDs increases your buying power, maximising your trading capital and potential profits. However, it’s important to note that leveraged trading also exposes you to more risk, as losses can be equally magnified if the trade goes against you, due to the fact they would be based on the full value of the position.
This means that, as a Retail Client, you could lose your entire investment if the trade goes against you. Professional clients can lose more than their deposits and they may be required to deposit additional funds to cover 
their losses.
