Warning on risks: Financial contracts for difference are complex instruments and are associated with a high risk of rapid financial losses due to leverage. On 77.44% of retail investor accounts, financial losses occur when trading financial contracts for difference with this provider. You should consider whether you understand how financial contracts for difference work, and whether you can afford to take the high risk of suffering financial losses. Please read the Risk Disclosures.
Cash
Example: If the average inflation rate in Slovakia in 2021 was 3.2 percent per year, 1000 euros held in cash for the same year lost purchasing power amounting to 31 euros. Calculation: 1000 / 1.032 = 968.99 euros -> If you deposited 1000 euros into a vault at the beginning of 2021, by the end of the year, due to 3.2 percent inflation, you could only buy goods worth approximately 969 euros. 1000 - 969 = 31 euros -> You lost this amount of euros due to inflation for every thousand euros you held in cash during the year.