A Contract-for-Difference (CFD) is a financial derivative product that allows an investor to obtain economic exposure (for speculative, investment or hedging purposes) to an underlying asset, such as a currency, an index or commodity, without acquiring ownership of the underlying asset.

Trading in over-the-counter (OTC) derivatives, including leveraged Foreign Exchange Contracts (FX) and Contracts-for-Difference (CFDs), is highly speculative and not appropriate for risk-averse investors or those seeking security of capital. An account opened with Questrade Inc. allows you to trade currencies on a highly leveraged basis. A small adverse price change to the underlying asset can magnify the impact on the funds in your account, potentially resulting in the total loss of your initial investment and any additional funds that you may deposit to meet margin calls.

Given the risk of losing your entire investment, speculating in the over-the-counter (OTC) derivatives market should only be conducted with risk capital that if lost will not have a substantial impact on your financial well-being. Before making a decision to trade FX & CFDs, you should carefully consider all of the disclosures in the account application and, in particular, you should evaluate the risk factors listed in the Risk Information Document for Derivatives provided to you upon account opening.

Should you decide to proceed with your investment, you acknowledge that you will be trading only with risk capital or funds that you can afford to lose, and that the loss of such funds will neither jeopardize your present life-style nor future retirement. FX & CFD trading may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.

Online trading

There are risks associated with using an Internet-based trading system. These include the failure of hardware, software and Internet connection. Questrade does not control signal power, reception or routing on the Internet, configuration of your equipment or reliability of its connection. We cannot, therefore, be responsible for communication failures, distortions or delays when trading via the Internet. Questrade Inc. employs back-up systems and contingency plans to minimize the possibility of system failure.

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Market commentary

All opinions, news, research, analysis, prices or other information contained on the Questrade website are provided as general market commentary and do not constitute investment advice. Questrade Inc. will not accept liability for any loss or damage, including, but without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

The content on the Questrade website is subject to change at any time without notice and is provided for the sole purpose of assisting traders in making independent trading decisions. We have taken reasonable measures to ensure the accuracy of the information on the site, however, Questrade Inc. does not guarantee its accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the site, for any delay in or failure of the transmission or the receipt of any instruction or notification sent through this site.