Yes you are right about CFDs downside being unlimited, and a position moving the wrong way in the short term using up funds.
One of the positve to CFDs in this area is the ability to use very tight stops and with no transaction costs it is possible to close out a position where your timing may be slightly off and then re-enter for very little overall cost (can lead to a bit of over trading as well if you are not carefull).
CFDs are not the be all and end all to trading and they do carry a certain level of risk that needs to be managed but if used properly can be a very profitable trading option.
