Risk Warning
Trading foreign currencies is a
challenging and potentially profitable opportunity for
educated and experienced investors. However, 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 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 'limit'
orders. |