Margin calls and swaps in CFDs (contracts for differences)
Those who start investing through a CFD broker often face "margin calls," or obligations to add money, which increase the risks of this form of investing. Margin calls and swaps (charges over holding positions) can cause these investments to evaporate. What are CFDs? Contracts for Differences are not stocks but derivative, indirect investment products. The investor and the counterparty enter into a temporary contract speculating on a price decline or conversely a price increase in an underlying asset. For example, the exchange rate of the dollar, the price of oil or the state of a well-known stock index such as the Nasdaq. So you don't buy the dollar, a barrel of oil, or a basket of stocks, but at some point through the investment account, [...]