Forex is a highly leveraged product. Trading Forex carries a high level of risk due to the used leverage which can work both to an advantage as well as disadvantage. As a result, trading Forex may not be suitable to all investors due to potential loses of an invested capital.
High Risk Warning
The following risk disclosure proposes certain – but not all – risks associated with trading foreign exchange currency (also known as “foreign exchange trading,” or “Forex”).
Forex market is speculative by nature and may cause substantial or complete loss of funds, or/and even losses in excess of the initial margin deposit. Therefore it should only be undertaken with “risk capital,” defined as funds that are not necessary to your survival or comfortable well-being. It is your responsibility to determine whether foreign exchange trading is suitable for your financial situation and investment objectives. If you do not fully understand risks involved in Forex trading as well as certain trading rules and policies of Beacon FX Market Ltd., you are hereby instructed not to utilize the services offered Beacon FX Market Ltd.
Without limiting the generality of the foregoing, trading currencies involves high risks associated with the following factors:
- Using leverage, trading funds may worth several times more than the value of your margin deposit.
- Compounded losses may occur due to unexpected adverse market movements, position build-up, or accumulation of commissions and other charges.
- Execution of orders at a stipulated price, or contingent “stop-loss” or “stop-limit” orders may be impossible or costly due to certain market conditions or fluctuations. You may on short notice be called upon to deposit additional margin funds, the failure of which may result in the liquidation of your position and your liability for any deficit in your account.
- Currency is not traded on an exchange and some combinations are traded irregularly. Price quotations for such orders may be outdated or unreliable due to the absence of counterparty, among other reasons. Orders for such trading may in any case not be readily realizable.
- Beacon FX Market Ltd., or a bank or broker that it uses, may become insolvent resulting in immediate closing of your positions.
Beacon FX Market Ltd. will take all measures possible to ensure that the information contained within this site is as accurate as possible, however, Beacon FX Market Ltd. (the “Company”) does not guarantee that the information contained on this website is free of errors and as such all material contained on the Company website is provided for informational purposes only and not as an investment objective/advice. Beacon FX Market Ltd. suggests that you seek independent advice before acting on any of the information contained within this site.