Risk Disclosure
Trading forex, cryptocurrencies, and CFDs involves substantial risk of loss. This section explains the risks you face and why careful consideration is essential before you trade.
Important Notice
Retail traders should not trade with money they cannot afford to lose. Leverage amplifies both gains and losses. Past performance does not guarantee future results.
Leverage Risks
Leverage amplifies both gains and losses. Trading on margin means you control a larger position with a smaller deposit, but losses can exceed your initial investment.
- Margin calls: If your account equity falls below required levels, your positions may be liquidated automatically.
- Liquidation: Positions can be closed at unfavorable prices without your approval.
- Total loss: Your entire account balance can be wiped out in volatile market conditions.
Forex Volatility
Currency markets move based on economic data, geopolitical events, interest rate decisions, and market sentiment. Rapid price movements are common.
- Currency fluctuation: Exchange rates can swing sharply, creating unexpected losses.
- Economic events: Central bank announcements and economic data can cause sudden volatility.
- Geopolitical risk: Political events and international tensions affect currency values.
Cryptocurrency Volatility
Cryptocurrency markets are highly volatile. Prices can move 10–30% or more in a single day based on sentiment, regulatory news, or market manipulation.
- Extreme price swings: Digital assets can spike or crash rapidly.
- Market immaturity: Crypto markets are less regulated and more prone to manipulation.
- Regulatory uncertainty: Government actions can dramatically impact cryptocurrency values.
CFD Trading Risks
Contracts for Difference (CFDs) allow you to speculate on price movements without owning the underlying asset. They carry specific risks.
- Price gaps: Market opens can create price gaps that trigger stop-losses at worse levels.
- Slippage: Execution prices may differ from your requested price during volatile markets.
- Liquidity risk: Some instruments may have limited liquidity, making it difficult to exit positions.
Counterparty & Operational Risks
Your funds and trades depend on the broker's financial stability and operational capabilities.
- Broker insolvency: If a broker fails, your funds may be at risk.
- Operational failures: System outages can prevent you from closing positions.
- Liquidity provider risk: Broker's liquidity providers may fail to execute orders.
Technology & System Risks
Trading platforms depend on technology infrastructure that can fail or be disrupted.
- System outages: Server failures can disconnect you from live markets.
- Connectivity issues: Internet disruptions may prevent order execution.
- Cyber threats: Hacking or DDoS attacks could compromise platform security.
Key Disclaimers
Leverage Can Amplify Losses
Leverage magnifies both profits and losses. A 10% adverse move in the market can wipe out your entire account balance if you're trading with high leverage. Most retail traders lose money. Do not use leverage you don't fully understand.
Only Risk What You Can Afford to Lose
Never trade with money earmarked for rent, bills, education, or other essential expenses. Trading should only be done with discretionary capital—money you can afford to lose completely without affecting your financial stability.
Past Performance Does Not Guarantee Future Results
Historical returns, backtests, and trading signals are not reliable predictors of future performance. Markets change. Strategies that worked in the past may fail in new market conditions.
Volatility Can Be Extreme
Especially in cryptocurrencies and during economic events, prices can move far beyond historical ranges. Volatility can increase suddenly, creating losses faster than you can react.
No Guaranteed Profits
Trading is not a guaranteed way to make money. There are no risk-free strategies. Anyone promising consistent profits or guaranteed returns is misleading you. Be skeptical of such claims.
Risk Management Best Practices
Use Stop-Loss Orders
Always set stop-loss orders to limit losses on every trade. This prevents emotions from keeping you in losing positions.
Position Sizing
Risk only 1–2% of your account on any single trade. This ensures one losing streak won't wipe out your entire balance.
Avoid Excessive Leverage
Start with low leverage (1:10 or lower). High leverage (1:100+) is a quick path to account liquidation for inexperienced traders.
Diversify Your Portfolio
Don't put all your capital into one asset or strategy. Diversification reduces exposure to any single market risk.
Educate Yourself First
Use a demo account to practice trading without risking real money. Learn market mechanics before trading live.
Control Your Emotions
Fear and greed drive poor decisions. Follow your trading plan. Don't chase losses or overtrade after wins.
Regulatory Compliance & Transparency
TeslaCapital is committed to regulatory compliance and transparent operations. We comply with applicable financial regulations across the jurisdictions in which we operate, including anti-money laundering (AML) and know-your-customer (KYC) requirements.
All traders are required to complete identity verification before funding or trading live accounts. This protects both you and the integrity of our platform.
For full details, please review our legal documents:
By trading with TeslaCapital, you acknowledge that you understand these risks and accept them as part of trading. If you have questions about any of these risks, contact our support team before opening an account.