The case of Octafx is another example of how people are lured by extreme leverage and then scammed. OctaFX, and most other CFD platforms, are the counterparty to every trade you take on them.

Essentially, the platform makes money only when you lose. And trading with extreme leverage of 100 to 500 times your capital is a sure way to lose money.

I had written about CFDs sometime back. We recently spoke about this in The Daily Brief by Markets by Zerodha as well.

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