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.
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