More about CFDs
Where are CFDs traded?
CFDs are over-the-counter (OTC) instruments. This means they aren't traded on exchanges and aren't stored with an independent depository. Instead, CFDs are traded with a CFD liquidity provider that Revolut has engaged to offer this product. The CFD liquidity provider is responsible for creating CFDs, executing CFD trades, processing corporate events related to CFDs, and more.
What is a Key Information Document?
The Key Information Document (KID) is a standardised document providing essential information to potential investors, as required by the EU's PRIIPs Regulation. It helps investors make informed decisions by presenting key details clearly and concisely.
The KID ensures transparency and protects retail investors by providing the necessary information to understand the product, including its risks and costs, before investing.
What is negative balance protection?
Negative balance protection ensures that your losses never exceed the funds you deposited into your margin account. Despite mechanisms like margin calls and forced liquidation to prevent your account from going negative, extreme market conditions can sometimes cause your balance to drop below zero.
In such cases, Revolut, in accordance with applicable laws, will limit your total losses to the payments you've made into your account and any realised profits from your CFD positions. This safeguard protects you from incurring losses beyond your initial investment.