Understanding Risk

Risk and investment types

All investments involve a degree of risk and returns can never be guaranteed so it is important to choose investments that suit your circumstances. Below is a quick-glance guide to a range of investment types and their associated risks.

Investment Type Objective Maximum Loss Savings Security and interest payment Secure Fixed Interest Bonds & Gilts Rising bond markets, fixed interest payments Initial Investment Investment Trusts, Unit Trusts & OEICs Rising investment prices, income from dividends Initial Investment Exchange Traded Funds (ETFs) Rising index or sector prices Initial Investment UK Stocks & International Stocks Rising share prices or dividends Initial Investment Company Warrants Rising or falling prices of the underlying financial investment Initial Investment Securitised Derivatives including Covered Warrants Rising or falling prices of the underlying financial investment Initial Investment Contracts for Difference Rising or falling prices of the underlying financial investment Unlimited

CFDs and Financial Spread Betting may not be suitable for all customers; therefore you should understand the risks involved and seek independent advice if necessary. This information should not be viewed as a recommendation to affect a CFD or Financial Spread Betting trade in any particular share or index. If the price of a CFD or Financial Spread Betting trade moves against you, you could face unlimited losses and face the need to make additional payments. You could lose all the money you have invested and you may have to pay more at a later date.

Warrants are not suitable for everyone. You should not deal in warrants unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in the light of your circumstances and financial position.