Risk Disclosure: Leveraged Forex and CFD Trading
Before you open a trading account with JustMarkets, read this plain-english explanation of how leveraged products can lose you money.
Take a look at the partnerWhat Happens to Most Retail Traders?
If you are reading this in Kenya and thinking about trading forex or contracts for difference (CFDs) through JustMarkets, the most important number to understand is this: the majority of retail accounts lose money. Across the industry, regulators publish data showing that between 70% and 80% of retail investors who trade these products end up with a loss. JustMarkets publishes a similar percentage on its own website, as it is required to under the rules it operates under.
That statistic is not a sales pitch. It is a warning. It means that if you open an account and trade in the way most people do, the most likely outcome is that you will lose some or all of what you put in. The small number who make money tend to be experienced, disciplined, and treating it as a business rather than a quick way to earn.
This site, juskbrokerke.com, is an independent review resource. We are not JustMarkets. We do not open accounts, take deposits, or give investment advice. We explain the risks so you can make a decision that is yours alone.
How Much Money Should You Put In?
The simple rule is this: never trade with money you cannot afford to lose entirely. That means no rent, no school fees, no emergency savings, no money borrowed from a friend or a mobile lender. If losing the full amount would change your life in a bad way, the amount is too large.
Leveraged products are not savings accounts and they are not fixed deposits. Your capital is at risk the moment you open a position. You should treat the money you deposit as money you have already decided you could lose without hardship, the same way you might treat a small entertainment budget.
Because leverage lets you control a large position with a small deposit, it is easy to feel like you are risking only a little. In practice, a small adverse move in the market can wipe out your entire deposit and, in some cases, you may owe more than you started with if the broker does not offer negative balance protection. Check the terms on the broker's site before you deposit anything.
Why Does Leverage Cut Both Ways?
Leverage magnifies both profit and loss. If you control a position ten times larger than your deposit, a one percent move in the market is a ten percent move in your account. That works in your favour when the market moves your way, and against you when it does not. There is no version of leverage that only amplifies the good side.
Markets do not move in straight lines. Prices gap over the weekend, slip during fast conditions, and jump sharply around news events such as central bank announcements, inflation data, or political developments. When a gap or slippage happens, the price you get filled at can be far from the price you expected. Your stop-loss order becomes a request, not a guarantee.
This matters most for leveraged forex and CFD positions because the position size is large relative to your deposit. A small gap can become a large loss. News-driven volatility can close a position at a much worse level than planned, and in fast markets your order might be filled at the next available price, which can be well beyond your stop.
What Is a Margin Call and When Will My Position Be Closed?
When you trade with leverage, your broker requires you to keep a minimum amount of equity in your account, known as margin. If your open positions move against you and your equity falls below the required level, you receive a margin call. That is a warning that you need to add funds or reduce your exposure.
If the market keeps moving against you and your equity falls to the broker's stop-out level, the broker will automatically close your positions, usually starting with the largest loser. You do not get a vote in this. The closure can happen at any time, including while you are asleep or in a meeting, and it may happen at a price worse than the level that triggered it.
Automatic closure protects the broker from your account going further into the negative, but it does not protect you from losing your deposit. The margin call is not a courtesy that guarantees you time to react. Treat it as a final warning. If you do not understand how margin, stop-out levels, and negative balance protection work at JustMarkets, read the broker's own risk documents before you trade, and use the contact form on this site if you want to flag an error in our review.
