Trading in the foreign exchange markets on margin carries a high level of risk, and may not be suitable for all individuals.
The high degree of leverage offered in the Forex markets can work against you as well as for you.
Before deciding to trade in the foreign exchange markets you should carefully consider your investment objectives, you level of experience, and your risk appetite. The possibility exists that you could sustain a loss of some or all of your equity and therefore you should not invest money that you cannot afford to lose. Only true excess disposable cash should be used in trading. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle. Past performance does not guarantee in any way future results.
The leveraged nature of foreign exchange (FOREX) trading means that any market movement will have an equally proportional effect and impact on your deposited funds/proceeds. 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. Thus, before deciding to trade in the foreign exchange markets you should carefully consider your investment objectives, your level of experience, and your risk appetite.
Should you have any enquiries and doubts pertaining the above risk warnings, please do not hesitate to contact us.