Systematic risk
Systematic risk is the part of investment risk associated with forces affecting the broader market, such as recessions, interest-rate changes, or financial crises. Diversifying across individual holdings cannot eliminate it, although different assets may respond differently.
In a hypothetical recession, shares across several industries decline together, so a portfolio spread across those industries still suffers losses.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure