by Wolf Richter
An even greater share of retail traders lost money with these highly leveraged derivative contracts during the Pandemic than before.
This type of highly leveraged Forex trading is illegal in the US, but it’s perfectly legal in the UK, the EU, Australia, South Africa, and other jurisdictions. They’re called “Contracts for Difference,” or CFDs, and they’re designed for retail traders. The hope is that you make a lot of money quickly with little investment. The risks are huge. In theory, you could lose a lot more than your account value.