Risk
Disclosure

Most retail investors lose money when trading leveraged products. This is not a formality printed at the bottom of a page — it is the single most reliable fact in this industry, it is published by regulators who force brokers to measure it, and it describes the probable outcome for a new trader.

You should assume you can lose everything you put in, and you should not put in money you need.

Leverage lets you control a position much larger than your deposit. It multiplies gains and losses by exactly the same factor — there is no version where it only does the first one.

At 1:500, a position moves five hundred times the size of your own stake. A move of a fifth of one percent against you wipes out the equivalent of your entire margin. Markets move that much in minutes, regularly.

Retail leverage in the EU and UK is capped at 1:30 on major currency pairs precisely because of what happens at higher ratios. An offshore broker may offer far more. The fact that it is offered is not evidence that it is wise.

A stop loss closes a position at the price you set only if the market trades through that price normally.

On a gap — a weekend open, a surprise announcement, a thin market — the next available price can be far past your stop, and that is where you are filled. The loss can exceed what you intended, and in extreme cases exceed your deposit.

A stop loss is a risk-management tool. It is not a ceiling on losses, and anyone describing it as a maximum is telling you something untrue.

• You inherit their losses in full. Automatically, at the same time, in the same proportion.
• You inherit their judgement, including on a day when it is wrong.
• Your position size is scaled to your account, so a drawdown that is survivable on a large account can be fatal on a small one.
• Nobody checked whether it suits you before it started.
• VYRON holds the same positions and so is not impartial about its own trades.

Copying somebody else's decisions does not remove the risk. It transfers who made the decision, not who carries the loss.

• Counterparty risk. Your money sits with the broker. If the broker fails, what you recover depends on its regulator and its client-money rules — and offshore protections are generally weaker than EU ones.
• Technology risk. Platforms go down, phones lose signal, and orders fail during exactly the volatility that makes them urgent.
• Liquidity risk. In fast or thin markets, the price you see is not always the price you get.
• Currency risk. If your account is in a different currency from your income, the exchange rate moves your result independently of your trading.
• Overnight and weekend risk. Positions held through a close are exposed to news while you cannot act.
• Cost drag. Spreads, commissions and swap charges are paid whether you win or lose, and compound against frequent trading.

Trading is not suitable for everyone. It is particularly unsuitable if you are trading with borrowed money, with money you need within a known timeframe, to recover a previous loss, or under financial pressure.

If you are not able to lose the amount in your account without it changing your life, the correct position size is zero.

Nobody at VYRON has assessed whether this is appropriate for you, because nobody here is in a position to.