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Which of the following is a risk associated with CFD trading?
1) Rates of the potential losses from future performance are at a very high level in poor market conditions, which can result in a total loss of the capital invested in this product. 2) All margins, profits, losses, charges and financing credits and debits in relation to a CFD are calculated using the currency in which the CFD is denominated, exposing you to fluctuations in the value of that currency if is not the base
3) Both A and B.

Respuesta :

siddharthadixit757

Answer:

3) Both A and B.

Explanation:

Option A highlights the risk of potential high losses in poor market conditions, emphasizing that there could be a total loss of the capital invested in CFD trading. This is a common risk associated with trading in financial markets.

Option B discusses the exposure to fluctuations in the value of the currency in which the CFD is denominated. This means that changes in currency value can impact margins, profits, losses, charges, and financing credits and debits related to the CFD.

Therefore, option 3, "Both A and B," suggests that both the risk of potential high losses in poor market conditions and exposure to currency fluctuations are associated risks with CFD trading.

So,the answer is 3).Both A and B

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