1. Leverage risk
Leverage lets you control a position larger than the capital you've put up as margin — which magnifies gains and losses equally. A price move that would be a modest gain or loss on an unleveraged position becomes a proportionally larger gain or loss on a leveraged one. A relatively small adverse price movement can result in losses that are large relative to your account balance, and in some cases can exceed your original deposit.
2. Market and volatility risk
Prices in the markets available on this platform — currencies, commodities, indices, and equities — can move quickly and unpredictably, particularly around scheduled economic releases, company earnings, and periods of low liquidity. Past price behavior is not a reliable indicator of what will happen next, and no strategy — including any described in our Knowledge Base — eliminates the possibility of loss.
3. Liquidity risk
In fast-moving or thin markets, it may not be possible to open or close a position at the price you expect. Orders — including stop-loss orders — can execute at a worse price than set if the market gaps through that level, particularly around major news events. See our Knowledge Base guides on stop-loss orders and trading economic news for more detail on how this happens in practice.
4. No guaranteed returns
Nothing on this platform, including educational content, strategy descriptions, or historical examples, is a guarantee or promise of future results. Trading performance, including any examples shown for illustrative purposes, does not predict or guarantee future performance.
5. Counterparty and technology risk
- Trading is conducted through a broker acting as counterparty to your position — you carry exposure to that counterparty's ability to honor its obligations.
- Platform outages, connectivity issues, or delays in price feeds can affect your ability to manage a position at a critical moment — always consider this when deciding how much risk to carry, and for how long, on any single trade.
6. CFD-specific risk
Contracts for difference do not involve ownership of the underlying asset — you're trading its price movement only. Positions held overnight may incur financing charges, and CFD pricing can, in some conditions, diverge briefly from the underlying market it tracks. These are structural features of the instrument, not platform errors.
7. Suitability
CFDs and other leveraged products are not suitable for every investor. Before trading, honestly assess your investment objectives, level of experience, financial situation, and capacity to bear losses. If you're unsure whether these products are appropriate for you, seek independent financial advice before proceeding.
8. Acknowledgment
By using the Services, you confirm that you have read and understood this Risk Disclosure, that you understand the risks described above, and that you are trading with capital you can afford to lose. Questions can be directed to support@horizoncapital.com.