CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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What is equity risk?

Equity risk definition

Investing cash in a company's stock is usually more risky than investing in so-called 'risk free' investments, such as government bonds. This is called equity risk.

Where have you heard about equity risk?

You may have heard about equity risk in relation to equity risk premium – the larger return investors expect to receive for taking their money out of 'risk free' investments and taking on equity risk by investing in the stock market instead.

What you need to know about equity risk.

The risks of investing in equity include share price falls, receiving no dividends or receiving dividends lower in value than expected. They also include the risk that a company restructure may make it less profitable.

Alternatively a company may fail. If this happens, you may be at the end of a long list of creditors and therefore risk not get the value of your investment back.

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