subject: CFD Trading - Go Short, Go Long, Make Money! [print this page] * The additional leverage gained, comes with the downside that you could lose a lot more than just what you invested. So it is advisable to adequately diversify yourself by splitting your investment across various asset classes.
* The value of a CFD contract is as good as the parties that have entered the contract. So, you are exposed to the possibility of counterparty risk.
* If markets move against your expectations the variation margin will have to keep being replenished so stop loss and limit orders come in very handy to restrict the amount of your losses.
CFD Trading - Go Short, Go Long, Make Money!
By: Faulkner Edwards
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