Forex trading involves substantial risk of loss and
is not suitable for all investors.
Before deciding to participate in Forex trading,
you should carefully consider your investment objectives,
level of experience and risk appetite. Most importantly,
do not invest money you cannot afford to lose.
There is considerable exposure to risk in any 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.
More over, 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. 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. Investors may lower their exposure to risk
by employing risk-reducing strategies such as stop-loss
or stop-limit orders.
There are also risks associated with utilizing an
Internet-based deal execution software application
including, but not limited to, the failure of hardware
and software. Back up systems and contingency plans
are in place to minimize the possibility of system
failure, and phone trading is always available.