Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Derivate instruments such as Forex and CFDs can be highly volatile due to the market conditions of the underlying instrument and the amount of leverage available.

When you apply leverage to a trade, the potential exists to lose more than the monies you have deposited in your trading account as it amplifies the profits and/or losses, depending on the market movement. In general, the greater the leverage the higher the potential returns but the higher the potential losses may be.