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.
