Yes. Due to leverage, if the market moves against your position significantly, your losses may exceed your initial deposit unless the broker offers negative balance protection.

CFD Trading: You speculate on price movements without owning the asset. Short-term and leveraged. Traditional Investing: You buy and hold actual assets like stocks or mutual funds. Generally longer-term and…

High leverage = high risk Market volatility can lead to rapid losses Overnight fees may apply Margin calls if your losses exceed your deposited funds