Knowledge Base

← Financial Instruments, Crypto-Assets, and Their Risks

Questions

What is the total loss risk for an investor in binary options?

50% of capital
75% of capital
100% of capital
200% of capital

What is the maximum leverage allowed for major currency pairs under ESMA restrictions on CFDs?

10:1
20:1
30:1
50:1

The standardized warning displaying the percentage of losing accounts is mandatory for binary options and CFDs.

True
False

CFDs without negative balance protection can result in losses exceeding the deposited capital.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Ban on binary options
Leverage limits for CFDs
Negative balance protection
Categories:

Outright ban

Access restriction

Financial protection

Average loss per client (2009-2013) according to the AMF

Click to see answer

According to the 2014 AMF study, what percentage of retail investors suffered losses on binary options and CFDs?

65%
74%
89%
95%

According to ESMA data, what percentage of retail accounts are in loss at the European level?

50% to 65%
65% to 74%
74% to 89%
90% to 100%