The Central Bank has issued a renewed warning to retail investors about the risks involved in Contracts for Difference (CFDs), a form of stock market investment based on borrowed funds.

In a report into the prevalence of CFD investment in Ireland during 2013 and 2014, the Bank discloses that 75% of the 39,000 retail CFD clients of Irish brokers, suffered losses on their investment during this period – the average loss being just under €7,000.

These loans can generate big profits for brokers. The report also finds that while most of the nine brokers involved in the trade here did warn their investors about the risks involved, some overestimated their client’s knowledge, experience and appetite for risk.

Meanwhile the planned €100m purchase of Dublin-based CFD broker, Ava by the British gambling software firm, Playtech, has collapsed following opposition from the Central Bank to the deal.

Playtech is one of the parties that will benefit from the acquisition by Ladbrokes of Gala Coral, which will be voted on by shareholders today in London.