Legal
Read this before you fund
Leveraged trading can produce rapid gains and equally rapid losses. This page sets out the risks in full, without softening them.
Risk Warning: Trading Forex, CFDs, and other leveraged financial instruments involves a high level of risk and may not be suitable for all investors. Leverage can magnify both profits and losses, and you may lose all of your invested capital. In certain circumstances, losses may exceed your initial deposit. Before trading, carefully consider your investment objectives, financial situation, level of experience, and risk tolerance. Ensure you fully understand the risks involved and seek independent financial advice if necessary. ZYZ Capital LTD provides execution-only services and does not accept responsibility for any trading decisions made by clients.
Leverage risk
Leverage of 1:100 means a 1% adverse move wipes out your entire margin on that position. At 1:1000, a 0.1% move does the same. Higher leverage is not a benefit in itself — it is a tool that demands smaller position sizes, not larger ones.
Market gapping
Prices can jump between levels without trading at the prices in between, particularly at the weekly open or around major economic releases. A stop loss may therefore be filled at a materially worse price than the level you set.
Liquidity risk
During thin conditions, spreads widen and fills can be slower. This affects exotic pairs, energy contracts and index CFDs outside their primary trading session most strongly.
Technology risk
Internet connectivity, device failures and platform outages can prevent you from opening or closing positions at the moment you intend to. Keep the mobile app installed as a fallback and use protective stops rather than relying on manual exit.
Suitability
CFDs are not suitable for everyone. Trade only with capital you can afford to lose in full, and seek independent financial advice if you are unsure whether these products are appropriate for your circumstances.