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Check your position value

Read the product disclosure statement to confirm whether your profit or loss is calculated on the full position value or only your margin deposit. The provider should state clearly that gains and losses reflect the total exposure, not the smaller amount you contributed.

Sources: [1]

Verify margin call terms

Examine the terms and conditions for when the provider may demand additional funds to keep your position open. Check whether the issuer can close your CFD without your consent if you cannot meet a margin call.

Sources: [1]

Confirm your client category

Determine whether you will be classified as retail or wholesale, since this affects whether negative balance protection and margin close-out rules apply to your account.

Sources: [1]

Sources

  1. ASIC Moneysmart: contracts for difference ↗

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