Forex Glossary

Derivative

An option in a contract that allows a change in value in relation to the movement of prices related the object at hand.

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CFDs are leveraged products. Trading in CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, CFDs may not be suitable for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with eToro OpenBook by following and/or copying or replicating the trades of other traders involves a high level of risks, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders and the overall risk associated in CFD Trading or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro’s OpenBook Community Member is not a reliable indicator of his future performance. Content on eToro’s OpenBook is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro Online Trading.