Trading CFDs

Understanding the risks with
CFD trading

We want you to understand the risks before you decide to trade

Before you trade CFDs

• Make sure you understand how leverage works, and that you can lose more than your initial deposit.
• Trade with money you can afford to lose. A trading loss should be a nuisance, not a disaster.
• Make sure you understand the upside and downside of every trade. You may only need to pay a small amount of margin, but the potential losses could be much greater.
• Find out about risk-management tools. For example, a guaranteed stop loss order is your guarantee that a CFD position is closed at a certain price if the market moves against you. Even if there’s a gap in the market, GSLOs will still close you out at whatever price you’ve specified.

How we can help

• Please read our Disclosure Document as well as our free Dealing with Risk guide before you get started.
• Make sure you have reviewed our 8-module Trading IQ so you can learn about leverage exposure, limit, stop and guaranteed stop orders, technical analysis, risk management and practical trading strategies.
• Take advantage of the five days we give all our new customers to practise live trading with a safety net – trade instruments based on real underlying markets like the Aussie 200 and FX AUD/USD with our TIQ Trade Week.
• Choose the account that best suits your level of trading knowledge and experience. In addition to our standard CFD account, we also offer the slightly less flexible Shield CFD account designed with protection built in. You can’t lose more than you have in your account, stop loss orders are automatic and they’re free, and every stop loss order has a no-slip guarantee – keeping you safe from market slippage you can’t foresee. Our charges are slightly higher for this account.

Feel reassured as a CMC Markets customer

• As a valued customer of CMC Markets, you have the comfort that client moneys aren't used to meet the trading obligations of other customers. Your funds on deposit with CMC Markets are held in a separate trust account in a separate trust account established, maintained and operated in accordance with the Client Funds Regulations. This means that client moneys are protected. This is one of the factors that separates us from smaller providers and offers you financial security.
• CMC Markets (NZ) is a 5-star rated member of the New Zealand Financial Markets Association (NZFMA), an organisation representing the interests of its members in ensuring the sound management of the over-the-counter financial markets in New Zealand, which turned over approximately $10 trillion in 2006.
• We comply with a number of New Zealand laws. One that is of interest to customers and prospective customers is the way we manage money placed on deposit with us.

Remember: CFDs are not for everyone, so please make sure you’re fully informed before you start trading.

Investing in CFDs carries significant risks and may not be suitable for all investors. Losses can exceed your initial deposit. We therefore recommend that you seek independent advice and ensure you fully understand the risks involved before trading.

References to all currencies are references to New Zealand dollars (NZD) unless otherwise specified. The content of this website does not constitute a recommendation and, consequently, you should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire any CMC Markets financial product. A Disclosure Document is available at www.cmcmarkets.co.nz or by calling 09 359 1200 and should be considered prior to acquiring or continuing to hold CFDs. Information about our services, including our fees and charges is also available at those sources. CMC Markets NZ Limited (Company Registration Number 1705324).