Legal
Risk disclosure
Trading leveraged instruments carries substantial risk. Read this before interpreting anything else on this site.
Demo data — fictional sample content for interface development. Not real ClonePips customer data.
Risk warning
Risk warning
Trading foreign exchange, CFDs and leveraged instruments on margin carries a high level of risk and may not be suitable for all investors.
Overview
Why this page exists
This page explains the risks that come with the subject matter of this site. The products described here concern leveraged trading and the copying of trading strategies. Both carry the risk of losing money, quickly and without warning.
Read this page alongside the disclaimer and the terms. It does not make any activity suitable, and it cannot list every risk: markets, venues and individual circumstances all add their own.
Risks
What copy trading adds to the usual risks
Beyond the risks of the instruments themselves, following a strategy on someone else's terms introduces these:
Replication is not identical
A copied order can fill at a different price, size or time than the master's — slippage, spreads and venue rules differ per account, so outcomes diverge even when the instruction is the same.
Strategies can and do lose
A provider's historical record, however presented, does not bound future losses. Drawdown periods are part of every strategy's record, and a past gain is not a forecast.
Leverage amplifies both directions
Margin trading magnifies losses as well as gains. Positions can be closed by margin rules before a move reverses, so a temporary adverse move can become a permanent loss.
Venue and counterparty exposure
Execution happens on a broker's venue. The broker, its liquidity and its systems are part of the risk path, entirely independent of the strategy that was chosen.
Provider decisions are not yours
A provider can change, pause or close a strategy, or alter its sizing, at a moment you do not control and may not see until after the fact.
Concentration hides in correlation
Following several strategies is not diversification if they trade the same instruments the same way. Losses can arrive together across a whole portfolio.
Mechanics
How losses can exceed expectations
Leverage lets you control a large position with a small deposit. That cuts both ways: a small adverse move can consume the deposit, and in some venue arrangements a loss can exceed the amount you first put in.
Margin calls, stop-outs and forced liquidation are venue rules, not advice. They can close a position at the worst moment precisely because the position has moved against you, turning a paper loss into a realised one.
Suitability
Only with capital you can afford to lose
No page on this site assesses whether any instrument or strategy is suitable for you — that assessment is yours, or a licensed adviser's.
- Understand the instrument and the strategy before allocating
- Size allocations as though they can go to zero
- Read the strategy's drawdown history, not only its return
- Set your own exit rules before you enter
On this site specifically
- All figures shown are fictional demo data
- No figure here describes a real account
- No page recommends any strategy or provider
Questions
Risk questions
Do the figures on this site come from real accounts?
No. Every performance figure on this site is demo data: fictional sample content for interface development, labelled wherever it appears and drawn from no real account.
Can I lose more than I invest?
With leveraged products, losses can exceed your initial deposit under some venue arrangements, and margin rules can close positions before a move reverses. The exact position is governed by the venue you trade through.
Is any outcome assured?
No outcome is assured. No strategy, provider or venue on this site can remove market risk, and no page here claims otherwise.
Notices
Risk warning
Trading foreign exchange, CFDs and leveraged instruments on margin carries a high level of risk and may not be suitable for all investors.
No advice
Information on this site is provided for general information only and does not constitute investment advice or a recommendation.
Demo data
Demo data — fictional sample content for interface development. Not real ClonePips customer data.