Can I lose more than my deposit? 

For stock investment products offered by Trive the client acquires ownership of the underlying asset, therefore the risks involved are those directly connected to the underlying within the stock market. 

Contracts for difference (CFDs) are a leveraged investment product, where the client only needs to deposit a percentage of the total value of the trade to open a position. Commonly known as "Margin Trading” the margin requirements are subject to regulatory provisions. Retail client accounts have negative balance protection, so the losses will be limited to the balance of the funds in the account.  

The closure of a Retail Client open CFD (on terms most favorable to the Client) are made when the sum of funds in the CFD trading account and the unrealised net profits of the CFD (or the sum of all open CFDs) connected to that account falls to less than half of the total initial margin protection. 

Just as trading with margin allows you to magnify your returns, your losses will also be magnified as they are based on the full value of the position.  

 

 

 

 

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