RISK
AWARENESS
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FOREX
trading is undoubtedly risky. Anyone contemplating
FOREX trading should understand the following:
THE
RISK OF LOSS IN TRADING FOREX CAN BE SUBSTANTIAL.
YOU SHOULD, THEREFORE, CAREFULLY CONSIDER WHETHER
SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF
YOUR FINANCIAL CONDITION. FOREX TRADING MAY
NOT SUITABLE FOR EVERY INDIVIDUAL. IT IS ADVISABLE
TO ALWAYS TRADE WITH RISK CAPITAL, “MONEY
THAT YOU CAN AFFORD TO LOSE”. LEVERAGE*
CAN WORK FOR YOU OR AGAINST YOU. |
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If
you are trading with high leverage*, then even a small
move against your position could result in a large loss,
including the loss of your entire initial deposit or
margin fund. Keep in mind that the market can always
move against you. No one can predict prices with certainty.
Also, the trading system could break down. If you are
using an Internet-based or other electronic system to
place trades, some part of the system could fail. In
case of a system failure, for a certain period you may
not be able to enter new orders, execute existing orders,
or modify or cancel orders that were previously entered.
A system failure could also result in loss of orders
or order priority.
*
Without proper risk management, this high degree of
leverage can lead to large losses as well as gains
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