Risk disclosure

Positive Markets is an education service. Before you trade any financial product, you should understand the risks below. Please read this page in full. If anything is unclear, do not trade until it is.

1. Trading carries a high risk of loss

Trading foreign exchange (forex), contracts for difference (CFDs), spread bets, futures, options, cryptocurrencies, shares and other financial instruments carries a high level of risk. Prices can move quickly and unpredictably. You can lose some or all of the money you put in. Trading is not suitable for everyone, and you should only ever trade with money you can afford to lose without it affecting your standard of living.

2. Leverage magnifies losses as well as gains

Many trading products, especially forex and CFDs, are leveraged. Leverage lets you control a large position with a small deposit (margin). A small price move against you can produce a loss that is large compared with your deposit. Your broker may close your positions automatically if your account falls below its margin requirement, locking in the loss. Depending on your broker, where you live and the product, you may lose more than your initial deposit.

Regulators in the UK and the European Union require CFD providers to publish the share of their retail client accounts that lose money. Those figures are typically well above half. Expect the same odds to apply to you unless you have a tested approach and strict risk controls, and even then, losses are possible.

3. Other risks you should understand

• Gaps and slippage. Prices can jump past your stop-loss level, especially around news, at the weekly open or in thin markets, so you may be filled at a worse price than you expected.
• Liquidity. In fast or quiet markets it may be hard to open or close a position at a fair price.
• Costs. Spreads, commissions, overnight financing (swap) charges and currency conversion fees all reduce your results, and they add up for frequent traders.
• Broker and counterparty risk. If your broker or platform fails, is poorly regulated or is fraudulent, you may lose your money regardless of how you traded. Check a broker's regulatory status with the regulator itself before you deposit.
• Technology. Platform outages, connection problems and order errors can cause losses.
• Cryptocurrencies. Crypto assets are highly volatile, often lightly regulated, and can fall to zero. Protections that apply to other investments may not apply.
• Your own behaviour. Fear, greed, overconfidence and the urge to win back losses lead many traders to break their own rules. These are some of the most common reasons beginners lose money.

4. Past and demo results do not predict the future

Past performance is not a reliable indicator of future results. Examples, charts and case studies in our lessons are for illustration only and were chosen to explain a concept, not to suggest that a method works. Results on a demo account do not reflect real trading: there is no real money at stake, so emotions, slippage and some costs are different. Hypothetical or back-tested results have similar limits.

5. Signals and third-party services

Our course on trading signals explains how signal services work and how to evaluate them. It is not a recommendation to use any signal service, and we do not provide signals. Many signal sellers show selected or unverifiable results. Treat any claim of consistent profits with caution.

6. Our education is general, not personal advice

Everything on this website, in our lessons, videos and emails, and in our coaching sessions is general education. It does not take into account your objectives, financial situation or needs. It is not financial, investment, legal or tax advice, and it is not a recommendation or an offer to buy or sell any financial instrument. Our coaches do not manage money or place trades for you. You are responsible for your own trading decisions.

Before trading, consider whether it is right for you and, if needed, get advice from an independent, appropriately licensed financial adviser. Rules on who may trade which products differ by country; it is your responsibility to make sure trading is legal for you where you live.

7. Tax

Trading profits may be taxable, and tax treatment depends on where you live and your circumstances. We do not give tax advice.

8. Questions

If you have questions about this disclosure, contact us through the contact form on our coaching page. See also our Terms of use and Privacy policy.