Risk Warning
Important information about the risks of Rolling CFD trading
High-Risk Investment Warning
Trading Rolling CFDs involves substantial risk and may result in the loss of your invested capital. You should not invest money that you cannot afford to lose and should ensure that you fully understand the risks involved. Past performance is not indicative of future results.
Market Risk
Market prices can move rapidly against your position, potentially resulting in significant losses that may exceed your initial investment.
- Volatile market conditions
- Unexpected price movements
- Economic events impact
- Market gaps and slippage
Leverage Risk
Leverage amplifies both potential profits and losses. Even small market movements can result in significant gains or losses.
- Magnified losses
- Margin calls
- Position liquidation
- Capital depletion
Operational Risk
Technical issues, system failures, or connectivity problems may prevent you from managing your positions effectively.
- Platform downtime
- Internet connectivity issues
- Order execution delays
- System maintenance
Counterparty Risk
There is a risk that the counterparty may not fulfill their obligations under the contract.
- Broker insolvency
- Credit risk
- Settlement risk
- Regulatory changes
Understanding Rolling CFDs
Rolling Contracts for Difference (CFDs) are complex derivative instruments that allow you to speculate on price movements without owning the underlying asset. Key characteristics include:
- No expiry date - positions can be held indefinitely
- Leverage allows trading with borrowed capital
- Profits and losses are calculated on the full position size
- Daily financing costs for overnight positions
- Mark-to-market pricing based on underlying asset
Leverage and Margin
Example: With 10:1 leverage, a 10% adverse price movement could result in a 100% loss of your invested capital.
Margin requirements can change without notice, and you may be required to deposit additional funds to maintain your position or face automatic closure.
Market Conditions
Various factors can significantly impact market conditions and your trading results:
Economic Factors
- Interest rate changes
- Inflation data
- Employment statistics
- GDP growth rates
Market Events
- Political developments
- Natural disasters
- Corporate announcements
- Regulatory changes
Risk Management
While we cannot eliminate risk, we recommend these risk management practices:
- Never invest more than you can afford to lose
- Use stop-loss orders to limit potential losses
- Diversify your trading portfolio
- Understand the products you are trading
- Monitor your positions regularly
- Keep adequate capital reserves
- Consider the impact of costs and fees
Regulatory Information
Cryptalya is regulated by leading financial authorities:
Brokersure Ltd
FCA Authorized
Firm Reference Number: 501719
GOin SAS
MiCA License: A2025-002
License Number: 894500LM6DICD790FQ34
Before You Start Trading
We strongly recommend that you:
- Seek independent financial advice if necessary
- Ensure you understand how Rolling CFDs work
- Practice with a demo account before live trading
- Read our Terms and Conditions carefully
- Only trade with money you can afford to lose
This risk warning does not cover all risks associated with trading. Please ensure you understand the full extent of the risk before trading.