Risk warning
A risk warning, in COBS 22.5, is the standardised wording a firm must show when it markets leveraged CFDs, spread bets or rolling spot FX to retail clients.
Explanation
The handbook requires this warning, with the firm's own loss percentage inserted: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage; a stated percentage of retail investor accounts lose money when trading CFDs with that provider; the reader should consider whether they understand how CFDs work and whether they can afford to take the high risk of losing their money. A firm that also sells restricted options uses a longer version that names those options. The percentage is the firm's figure, calculated as the rule requires. It is not a figure published by this site, and it is not a forecast for any one account. The warning is a conduct rule. Quoting it here is not a recommendation to trade or not to trade.
This page explains published terms for education and reference. It is not financial, investment, tax, or trading advice, and it does not recommend a firm, product, or strategy.
Related terms
Sources and last check
Last checked . Rules, prices, and product names change. Read the source.