What beginners often overlook about leverage risks

[enkosia]

When I first learned about leverage, I thought of it only as a way to make profits larger. But the more I read, the more I saw warnings that most retail accounts actually lose money trading CFDs. More than 75% of traders end up with losses, and leverage is one of the main reasons. It seems many beginners focus only on the profit potential and don't realize that losses can also exceed the money they invest.

[Siasia]

The provider makes it clear that leverage is a double-edged tool. It can magnify profits, but it also magnifies losses. On roboforex, the risk warning specifically says that trading with leverage involves a high level of risk and that you should never risk more than you can afford to lose. For beginners, the mistake is ignoring these warnings and treating leverage as a shortcut to success. In reality, it is one of the main reasons why CFDs are not suitable for everyone.

[bills]

What many beginners overlook is that leverage changes the scale of every trade. Even small market moves can wipe out an account if exposure is too high. That's why the provider advises not to begin unless you fully understand the risks. Losses are not an unusual event but a frequent outcome when leverage is misunderstood. Awareness of this fact is essential before anyone starts trading forex or CFDs.