Risk disclosure
Trading CFDs with leverage involves a high level of risk and is not suitable for all categories of investor. You may lose all of the capital you have invested. Before opening a trading account with White Oak Capital Management, make sure you fully understand all the regulatory and market risks described below.
Seven risks you need to know about
Leverage risk
Leverage magnifies the financial outcome of a trade in both directions. A small price move against your open position can wipe out your entire trading deposit in an instant. The risk grows as the conditions scale up: from conservative 1:10 leverage on the Standard account to the maximum of 1:100 on the Gold tier.
Market risk
The prices of financial instruments can change sharply and unpredictably under the influence of macroeconomic news, regulatory decisions, geopolitical events and overall investor sentiment.
Gap and slippage risk
During periods of high volatility or after the weekend, price gaps can occur in the market. A position may be closed at a price worse than the one you originally set in your stop-loss order.
Liquidity risk
At certain times (for example, at the overlap between trading sessions or when critical news is released) the number of counterparties in the market falls, making it harder to open or close a position at the desired price.
Operational and technical risks
There is a possibility of internet connection failures on the provider's side and of hardware or software malfunctions on the user's side, which may cause delays in sending and executing trading orders. All protective orders are stored directly on the WOCM server, which partly mitigates this risk by keeping positions active even when the client terminal is offline.
Counterparty risk
When trading CFDs you enter into a direct contract with the broker. The company's legal status, financial standing and regulatory framework directly affect your relationship with it. Our company's registration details and UK address (13 Hanover Square, Mayfair, London W1S 1HN) are available for verification in the FCA register.
Risk of emotional decisions
Psychological factors such as fear and greed often lead to spontaneous breaches of your own risk management rules and trading limits. On the premium Bronze, Silver and Gold tiers, clients receive analytical support, sessions with accountants and the guidance of personal portfolio managers to minimise emotional factors.
What price move wipes out the deposit?
Choose an account type and volume: the diagram shows by what percentage the price has to move against you for the loss to equal the margin.
Who is CFD trading suitable for?
CFD trading is suitable only for those who fully understand how margin instruments work, are fully prepared to lose the funds they invest, and use only free capital (risk capital) to fund their positions.
What we ask you to do before you start trading
Four steps worth completing before your first deposit.
Education and demo first, then a live account
The education centre is free, and the demo account runs on real quotes.
Risk warning. The protective mechanisms of the trading terminal and the availability of qualified support do not rule out market losses. Trading CFDs carries a high risk of losing your capital.