Trading in the
Forex market is a challenging opportunity
where above average returns are available to
educated and experienced investors who are
willing to take above average risk. However,
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.