Please read carefully before placing any leveraged trade with Rise.
What This Warning Is For
Rise offers contracts for difference (CFDs) on FX, commodities, indices, equities, cryptocurrencies and other instruments. CFDs are leveraged products. This means you can control a position that is much larger than the cash you deposit. Leverage can amplify your profits — and it can amplify your losses just as quickly.
This article explains the main risks of trading on leverage. It is not investment advice. If anything below is unclear, stop and contact our team before you trade.
Important: Leveraged CFD trading carries a high level of risk and is not suitable for every investor. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.
The Core Risks
1. You Can Lose More Than You Expect
Because leverage multiplies exposure, a small adverse price move can wipe out a significant portion of your account balance. In fast-moving or illiquid markets, losses can occur faster than you can react.
2. Margin Calls and Stop-Out
When the value of your open positions moves against you, the margin available in your account decreases. If your margin level falls below the stop-out threshold, Rise may close some or all of your open positions automatically — without prior notice — to protect the account from a negative balance. See the article Why was my trade closed automatically (Margin Call) for full details.
3. Market Gaps and Slippage
Prices can move sharply between trading sessions, over weekends, or around high-impact news. Your stop loss may execute at a worse price than the level you set ("slippage"), and gap moves can cause losses that exceed your initial margin on that position.
4. Volatility and Liquidity
Some instruments — especially cryptocurrencies, small-cap stocks, and emerging-market FX pairs — can be very volatile and may suddenly become illiquid. During those periods, spreads widen and execution may slow or fail.
5. Technology and Connectivity
Online trading depends on the internet, your device, and third-party platforms (e.g. MT5). Outages, latency, or browser issues can prevent you from opening, modifying, or closing positions when you want to.
6. Currency and Conversion Risk
Holding positions in instruments denominated in a currency other than your account base currency exposes you to FX risk on top of the instrument's own price risk.
7. Overnight (Swap) Costs
Positions held overnight may be subject to swap charges or credits. Over long periods, these can materially affect your P&L.
How Rise Helps You Manage Risk
- Negative balance protection — your account cannot go below zero.
- Dynamic Leverage — leverage automatically steps down as your net open volume increases.
- Temporary Leverage Caps during specified events (Friday pre-close, Monday open, high-impact news).
- Stop loss and take profit orders on every trade — we strongly recommend using them.
Tip: Always trade with a position size you can afford to lose, and review your free margin before adding to any open position.
What You Should Do Before Trading
- Read the Customer Service Agreement, Product Disclosure Statement, Best Execution Policy and Dynamic Leverage Terms & Conditions on the Rise website.
- Make sure you understand the difference between leverage, margin and exposure.
- Practice on a demo account if you are new to CFDs.
- Use stop loss and take profit orders on every trade.
- Monitor your margin level — not only your P&L.
Need Help?
If you are unsure whether a leveraged product is suitable for you, contact Rise Client Support before opening a position. Our team can walk you through the mechanics — but we cannot give personal financial advice.
Trading involves significant risk and is not suitable for all investors. Past performance is not indicative of future results. This article is for informational purposes only and does not constitute investment, legal, tax or financial advice. Rise is a trading name of INGOT SC LTD, holder of Financial Services License SD117.