Clarytrade
Risk centre

Understand the risks before you trade

We'd rather you trade well and stick around than open an account you'll regret. Here's the honest version.

Risk warning. CFDs and leveraged products are complex and high-risk. You can lose more than you deposit. Between 62% and 78% of retail CFD accounts lose money. Only trade with money you can afford to lose.

Trading involves substantial risk. CFDs and leveraged products are complex and can cause losses that exceed your deposit. Between 62% and 78% of retail investor accounts lose money when trading CFDs. Crypto-assets are highly volatile and largely unregulated. Past performance does not indicate future results. Nothing on this site is financial advice. Check a platform's regulation and the rules in your country before trading.

By product

Where the risk actually comes from

Leverage & CFDs

Leverage multiplies both gains and losses. With CFDs you can lose more than your deposit. Between 62% and 78% of retail CFD accounts lose money. Negative-balance protection helps, but isn't universal.

Crypto-assets

Highly volatile and largely unregulated. Not usually covered by compensation schemes. Exchanges can fail or freeze withdrawals; self-custody shifts risk to you. You can lose your entire investment.

Margin trading

Borrowing to trade can trigger margin calls and forced liquidation at the worst possible time. You may have to deposit more, fast, or have positions closed at a loss.

Options & derivatives

Complex instruments where you can lose your whole premium — or far more when writing options. Suitability checks exist for a reason.

FX & conversion fees

Trading in a currency other than your account base incurs conversion costs that quietly add up. Always check the all-in cost.

Emotional & behavioural risk

Overtrading, revenge trading and chasing losses ruin more accounts than bad strategies. A demo account and a written plan help.

How to protect yourself

  • Only trade with money you can afford to lose entirely.
  • Start on a demo account and trade small when you go live.
  • Prefer platforms with tier-1 regulation and segregated funds.
  • Use the lowest leverage you can, not the highest available.
  • Check the rules — and tax treatment — in your own country.
  • Nothing on this site is financial advice. If unsure, seek a licensed adviser.