| Risk
Disclaimer
Trading
foreign currencies is a challenging and potentially profitable
opportunity for investors. However, before deciding to participate
in the Forex market, you should carefully consider your investment
objectives, level of experience and risk appetite. Most importantly,
invest only excess capital and what you are able to risk.
There is considerable exposure to risk in
any equities or foreign exchange transaction. Any transaction
involving currencies involves risks including, but not limited
to, the potential for changing political and/or economic conditions
that may substantially affect the price or liquidity of a
currency.
The leveraged nature of FX trading
means that any market movement will have an equally proportional
effect on your deposited funds. This may work against you
as well as for you. The possibility exists that you could
sustain a total loss of initial margin funds and be required
to deposit additional funds to maintain your position. Your
risk is what is deposited into your trading account. If you
fail to meet any margin call within the time prescribed, your
position will be liquidated and you will be responsible for
any resulting losses. 'stop-loss' or 'limit' orders are highly
recommended with any trades to reduce risk.
Trading foreign exchange on margin
carries a high level of risk, and may not be suitable for
all investors. The high degree of leverage can work against
you as well as for you. Before deciding to invest in foreign
exchange you should carefully consider your investment objectives,
level of experience, and risk appetite. The possibility exists
that you could sustain a loss of some or all of your initial
investment and therefore you should not invest money that
you cannot afford to lose. You should be aware of all the
risks associated with foreign exchange trading, and seek advice
from an independant financial advisor if you have any doubts.
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