Trading gold (XAUUSD), forex and contracts for difference (CFDs) involves a high level of risk. This Risk Disclosure explains the main risks, so you can decide whether trading is right for you. It applies to every signal, analysis, educational resource and tool that Live Gold Trading provides on livegoldtrading.com, in our WhatsApp community and in our Telegram channel.
Please read it together with our Terms and Conditions and our Risk Disclaimer.
1. You can lose money
Many brokers publish the share of their retail clients’ accounts that lose money when trading CFDs, and it is usually the majority. Losing trades are a normal part of trading, and a run of losses can happen even when an approach has worked before. Only trade with money you can afford to lose.
2. Leverage and margin
Leverage lets you control a large position with a small deposit, called margin. It increases losses in the same way it increases gains. A small move against your position can use up your margin quickly, and your broker may then close your positions automatically (a “stop out”). Depending on your broker and account type, you may lose more than your deposit.
3. Gold is volatile
The gold price can move sharply within minutes, especially around US economic data such as jobs and inflation reports, central bank decisions, geopolitical events and changes in the US dollar. A sudden move can turn a trade from profit to loss very quickly.
4. Gaps, slippage and execution
- Prices can “gap” from one level to another without trading in between, for example when the market reopens after the weekend or after major news.
- Your order may be filled at a worse price than you asked for (slippage), and a stop loss does not guarantee that your loss will be limited to the level you set.
- Spreads often widen around news releases, at the daily market break and in quiet trading hours.
5. Differences between brokers
Prices, spreads, contract sizes, pip values, trading hours and overnight fees differ from broker to broker. The levels in our signals may not match the prices on your platform exactly, and the result of a trade depends on your broker’s execution. The position size calculator on our website uses the assumptions shown beside it, which may not match your broker’s contract specifications, so check them before you trade.
6. Overnight and trading costs
Holding a position overnight usually incurs a financing charge (swap), and spreads and commissions reduce your returns. These costs add up, especially if you trade often.
7. Timing and delivery of signals
Signals are sent through our website, WhatsApp, Telegram and other channels that depend on third-party services, your device and your internet connection. Messages can be delayed or missed. By the time you see a signal, the price may have moved, and if it has moved away from the entry, the original risk and reward no longer apply.
8. Past performance and examples
Past performance is not a reliable indicator of future results. Examples of signals on our website are illustrative, and any results or statistics we publish may not reflect what you would achieve, because of differences in timing, execution, position size and costs. No signal, analysis or system can guarantee a profit.
9. Broker and counterparty risk
When you trade, you depend on your broker. Brokers are regulated to different standards in different countries, and the protection of your money varies. If a broker fails or acts improperly, you could lose money regardless of how your trades perform. Choose a broker carefully and check its regulation yourself. We are not responsible for any broker.
10. Technology risk
Trading platforms, internet connections, devices and automated tools can fail or behave unexpectedly. An outage at the wrong moment can stop you from opening, managing or closing a trade.
11. Emotional and behavioural risk
Trading can be stressful. Fear and greed lead traders to take larger positions, move or remove stop losses, or trade too often to win back losses. A written plan and a fixed risk per trade help, but they do not remove the risk of loss.
12. Rules and taxes where you live
Leveraged trading is restricted or prohibited in some countries, and profits may be taxable. It is your responsibility to make sure that trading is allowed where you live and to meet any tax obligations.
13. Is trading right for you?
Before you trade, think carefully about your experience, your objectives and how much you could afford to lose. Practising on a demo account first, and getting advice from an independent, qualified adviser, can help you decide.
14. Contact us
If you have questions about these risks, email support@livegoldtrading.com.