Disclaimer & Risk Warning
All the information on this site is provided “as is” for INFORMATIONAL PURPOSES ONLY, not intended for trading purposes or advice.
Warning: Trading involves significant risk of loss and is not suitable for everyone. We would like to remind you to consider the risk aspects before investing. In particular, please note:
- Forex trading is highly speculative in nature, which can mean currency prices may become extremely volatile.
- Forex trading is highly leveraged, and since low margin deposits normally are required, an extremely high degree of leverage is obtainable in forex trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited.
- You may sustain a loss of more than your investment. For example, an initial deposit of $1,000 will allow you to control a position of $100,000 notional value with 100:1 leverage. If you were to maximise your leverage, a market move over 1% would cause you to lose your entire cash balance. A larger market move would mean an increased loss.
Since the possibility of losing more than your entire cash balance does exist, speculation in the Forex market should only be conducted with risk capital you can afford to lose and, which will not dramatically impact on your lifestyle. Only you can determine whether trading in foreign currencies is suitable for you.
However, in light of the information above, please carefully consider the risk associated with such trading. If the only form of investing that you have pursued in the past has been conservative in nature, then we encourage you to study Forex trading prior to making any final decisions and recognise that only “Risk Capital” is suitable for such trading. One recommended method of Forex training is to use a “Demo account”, free of charge, where you can practise trading and trading strategies without financial risk.
