Every financial product or investment has risk. Forex or foreign exchange (FX) is no different. That is why it is important for customers and agents, such as introducing brokers (IBs) and white label providers, to be aware of the potential risks present in the foreign exchange market. This page provides risks and disclaimers associated with Forex and the information on this website.
Trading and Forex Related Risks
Please make sure that your investment objectives and risk tolerance are appropriate for investing in the FX market. You should only be committing “risk capital” for this purpose; that is, money that you can afford to lose.
All Forex transactions involve considerable risk. These risks include, but are not limited to the following: political risks, interest rate risk, and other economic risks that might adversely affect the price of a given currency or its liquidity in the marketplace.
Any leveraged transaction can cause either a favorable or unfavorable move in the value of the funds in your account. Since trading currencies is usually performed using leverage, this can have a multiplicative effect on both your losses and gains. There exists a possibility that you may sustain a loss that exceeds the mandatory level of equity in your account and be required to deposit additional funds to maintain your positions open. This is referred to as a “margin call.” IF you fail to meet the margin call within the allowed time period, your position will be liquidated and you will be responsible for any of the losses sustained. It is also possible for you to sustain a loss that is greater than your total invested amount. To decrease the multiplicative risk associated with leverage, you can limit the amount of leverage you use and/or employ other strategies, such as trading with a “stop loss.” Nevertheless, trading currencies on margin has a high level of risk and may not be suitable for all investors. Please consult with an independent financial adviser if you have any doubts or concerns about trading currencies.
In trading, there are also risks involving the utilization of the MT4 (MetaTrader 4) execution platform through the Internet. This includes the risk of failure associated with hardware or software. Nevertheless, backup systems and other safeguards are utilized to minimize the probability of system failure. Furthermore, trading via phone and live chat are also provided as added security measures.
Testimonials
None of the testimonials used on this website are indicative of future results. All of the testimonials provided were unsolicited and not representative of all clients. Payment or compensation was not offered to anyone quoted in any of the testimonials provided on this site.
Liquidity Risks
Liquidity refers to the ease at which a certain amount of a given financial instrument (like currencies) can be traded without it significantly affecting its market price. Liquidity during extreme market conditions, such as unexpected news events or economic releases, can vary greatly and unpredictably, thereby affecting the ease of execution of certain orders and causing wild swings in market price. Forex is not immune from these liquidity risks. Liquidity in foreign exchange can also be affected during the opening of major financial markets or near the traditional rollover time (5:00 PM New York Time), as many liquidity providers temporarily go offline to settle their daily transactions. All of this can also lead to a widening of the spreads in certain currency pairs, execution delays and trade fills at unfavorable levels.
Accuracy of Information
At any time and without notice, the content of IntroduceForex.com is subject to change. This content is provided for the sole purpose of assisting customers make independent decisions. The content does not constitute an offer to sell or a solicitation of an offer to buy an investment in any way. We have taken reasonable measures to ensure that the information provided on this website is accurate; nevertheless, we do not guarantee the accuracy of said information. Furthermore, we will not accept liability for any loss or damage which may arise directly or indirectly from either the website’s content or your inability to access it, as well as for any delays or failure of transmission of any information through this website.
Restricted Countries
Introducing brokers (IBs) or white label providers that work with us cannot open accounts for the residents of the following countries: The United States, Cuba, Nigeria, Lebanon, North Korea, Iran, Iraq, and Afghanistan. Even though we may work with IBs and white label providers that reside in some of these restricted countries, their clients cannot reside in these regions.
