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Risk Disclosure
EFX University LLC is a financial education and training company. We do not sell a business opportunity, “get rich quick” program or money-making system. We believe, with education, individuals can be better prepared to make investment decisions, but we do not guarantee economic success as a result of our training. We do not make earnings claims, efforts claims, or claims that our training will make you any money. All material that we produce is our intellectual property and protected by trademarks, service marks and copyrights. Any duplication of our content is strictly prohibited. Please see our Full Disclosure for important details.
Risk Warning
U.S. Government Required Disclaimer – Trading foreign exchange (forex) 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 forex 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 forex trading, and seek advice from an independent financial advisor if you have any doubts.
The purchase, sale or advice regarding a currency can only be performed by a Futures Commission Merchant (FCM) or introducing Broker (IB) registered with the Commodity Futures Trading Commission (CFTC) and a member of the National Futures Association (NFA) membership as a FCM, IB or CTA. Neither we, nor our affiliates or associates are involved in the sale and trading of, nor advice respecting, forex products and services.
All purchasers of our forex trading education and training products are encouraged to consult with a professional commodity futures forex intermediary, advisor or licensed associated person of their choice regarding any particular trade or trading strategy. We make no representation that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. We are not responsible for communication failures or delays when trading via the Internet. We employ backup systems and contingency plans to minimize the possibility of system failure, and trading via telephone may be available.
Clearly understand this: Information contained on our website and other materials are not an invitation to trade any specific investments. Trading requires risking money in pursuit of future gain. That is your decision. Do not risk any money you cannot afford to lose. This communication does not take into account your own individual financial and personal circumstances. It is intended for educational purposes only and NOT as individual investment advice. Do not act on this without advice from your investment professional, who will verify what is suitable for your particular needs & circumstances. Failure to seek detailed professional personally tailored advice prior to acting could lead to you acting contrary to your own best interests & could lead to losses of capital.
*CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Trading is a Risky Affair:
Trading forex is an extremely risky affair. Only experienced investors who understand the risks and are willing to undertake them and are financially capable of withstanding losses that can exceed the deposited amount should engage in trading forex. Hence, a proper understanding of the risk is necessary prior to trading in forex.
High Leverage and Low Margin Can Culminate in Quick Loss:
Owing to price changes and fluctuations in foreign exchange contracts and cross-currency contracts, the combination of high leverage and low margin can lead to significant losses. The initial margin can be small when you compare it with the value of foreign currency and so the transactions can be leveraged. Customers need to maintain the minimum margin requirements for the open position at all times. It is the duty of the customer to keep an eye and monitor his/her net outstanding balance. If the minimum requirement is not maintained, we hold the right to liquidate all open positions. Similarly, leverages too can lead to high gains as well as losses.
Risk-reducing Orders and Strategies:
Orders like stop-loss orders or stop limit orders that aim at limiting the losses to some upper amount may not be effective because, sometimes, it becomes impossible to execute such orders owing to the market condition.
Options – Variable Degree of Risk:
When you are involved in transactions involving forex, the risk element increases. You have two options, namely put or call, and you should be familiar with the differences and meaning of those options. You should be aware of which options need to be increased to potentially achieve higher profits. The purchaser can either offset or even expire the option depending upon the type of options and the nature of the option that was purchased. There are instances where the purchaser can acquire spot positions as well with associated liabilities for margin. If your purchased options expire, you will suffer a total loss of your investment and it shall also comprise purchase of the option as well as the transaction costs too. It is worth adding that deep out of the money options are least likely to be profitable. There are a lot of details that are involved in buying and selling of options. So before participating in this, you should be careful enough to check out all such details thoroughly as it can have huge repercussions.
Internet Trading:
There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection.
Secondary Risk Disclosure:
Margined currency trading is one of the riskiest investments that you can undertake. It is only suited for sophisticated individuals and institutes who are aware of the huge risk and are willing to take it. If you open an account, you can trade foreign currencies on a hugely leveraged basis which can be approximately 100 times your otherwise account equity. You could lose all your funds that you deposit as a broker and you may even lose a substantial amount of your capital as well if you fail to capitalize on the market and invest in wrong transactions.
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