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Risk Warning
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Risks of Trading Foreign Currencies |
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Before deciding to participate in the Forex market, 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 associated with 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.
This program permits you to trade foreign currencies on a highly
leveraged basis (On our Standard Accounts up to 100 times your investment). An investment of
$1,000 would permit you to trade up to $100,000 of any particular
currency. If you trade using the maximum available leverage, and if
the exchange rate of a specific currency against other currency
changes by 1% or more, then your entire investment is at risk of
loss.
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, although your risk is only
limited to funds on deposit. Investors may lower their exposure to
risk by employing risk-reducing strategies such as 'stop-loss' or '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. Saletlx employs back up
systems and contingency plans to minimize the possibility of system
failure, and phone trading is always available. |
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