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Risk Disclosure
TRADING IS NOT SUITABLE FOR EVERYONE. TRADING FOREX INVOLVES HIGH RISKS AND CAN CAUSE YOU A COMPLETE LOSS OF YOUR FUNDS!
Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade 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 could lose all of your money fast due to the following circumstances, among others: poor market trading conditions, mechanical error, emotional induced errors, news surprises, and earnings releases. The high degree of leverage associated with trading currencies means that the degree of risk compared to other financial products is higher. Leverage (or margin trading) may work against you resulting in substantial loss. There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
By signing up as a member, you acknowledge that we are not providing investment advice or individualized investment advice. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. In this regard, the amounts paid for the use of our community can’t be refunded. YOU are fully responsible for any investment decisions you make. You agree that such decisions are based solely on your evaluation of your own financial circumstances, investment objectives, risk tolerance and liquidity needs. All information provided to you is intended for educational purposes only and does not constitute legal or financial advice. EasyFXTrading does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor or consultant. We are not acting as your advisor and we are not liable for the damages, expenses, and potential losses you may suffer because of any investment. The decision to rely upon any information we provide is yours and yours alone.
By signing up as a member, you further acknowledge:
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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