Key Information Document (KID)
Two hypothetical KIDs show costs for the same amount but different periods: one assumes a one-day CFD holding, while another includes longer financing. Match assumptions before comparing. A lower displayed percentage alone does not establish the cheaper product for your trade.
Two distinct kinds of disclosed information
A KID’s costs, risk indicator and performance scenarios help compare the product itself. A CFD provider’s loss-making-account percentage describes a specified group of accounts, not an individual client’s probability of loss. Sources: European Supervisory Authorities: PRIIPs KID; ESMA: CFD product intervention.
Scenarios are not forecasts
They show outcomes under the document's rules and assumptions rather than promise future returns. The 1–7 indicator does not describe every risk or guarantee a maximum loss. Leverage and closeout conditions require separate understanding.
When and what to read
For in-scope EU PRIIPs, disclosure must occur in good time before commitment. Identify manufacturer, product, version, holding period, costs and complaints route. The KID supports concise comparison; the agreement and specification still govern execution.
Primary source checked 11 October 2026: finance.ec.europa.eu.
FAQ
Is the favourable scenario a profit promise?
No. It is a modelled outcome in the document, not a forecast or personal target.
Does every investment account worldwide need a KID?
No. Requirements depend on jurisdiction, product and client; this PRIIPs example concerns the applicable EU scope.
