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Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.
Ensure you fully understand the risks involved and seek independent advice if necessary. The value of Stock investments can go down as well as up and as a consequence investors may not realise the sum originally invested and is not guaranteed at any time. If you are unsure of the suitability of Share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. Past performance is never a reliable indicator to future performance of investments.
The geared nature of CFD's means that both profits and losses are magnified. If you do not use stop losses and your position moves against you, you could incur very large losses.
In the event of a trade moving against you and reducing your cash balance, you may be subject to a 'Margin Call'. This is to ensure you have sufficient funds in your account for the initial margin requirements to keep your positions open. If you do not have sufficient funds in your account or do not provide sufficient funds within the time required you may be forced to close your position and you will be liable for any deficit. CFDs are more suited to short term investors as opposed to long term investors due to the associated costs.
As an investor, you do not have the right to a vote at the AGM or any other meeting. You are liable to pay out the dividend if you hold an equity position when they go ex-dividend.
It is important to know you are trading contracts with the CFD provider, not physically trading in the underlying market. This means you don't actually own any assets. It is possible to lose more than your original investment if you do not use guaranteed stop losses and the position you are in is subject to slippage, gapping or a fast market.