Trading responsibly

Leverage lets you open a crypto CFD position far larger than the money you set aside for it. That cuts both ways: a small move in the underlying price can wipe out your margin, and because losses are calculated on the full position size, they can exceed what you expected to risk. Crypto prices swing widely and trade around the clock, so a position can move sharply while you are away from the screen.

What leverage does to a position

When you trade a crypto CFD, you post margin rather than the full value of the trade. The exchange or the broker then applies leverage to that margin. The result is that gains and losses are magnified relative to your deposit. A market that moves against you can trigger a margin call or close your position automatically, and in fast conditions the exit price may be worse than you planned.

Two companion pages: Bitcoin price predictions: why nobody can make one reliably and Trading Bitcoin through CFDs: what it means and what it risks.

Practical safeguards

• Trade only money you can afford to lose entirely, never funds set aside for essentials.
• Set limits before you open a position: a maximum loss per trade and a daily cap.
• Size positions so that a single adverse move does not end your participation.
• Keep leverage modest and understand the margin requirements of each market.
• Step away after a loss instead of trying to recover it immediately.

Scams to recognise

Be wary of anyone promising guaranteed returns, "doubling" schemes, paid signal groups or managed accounts that ask you to send funds. No legitimate operator can promise profit, and pressure to act quickly is a warning sign. If something goes wrong, consumer protection bodies in your country can explain your options and how to complain.