Risk disclosure

Before deciding to participate in the capital markets, 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 off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.

Moreover, the leveraged nature of Forex 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 requirement, your position may be liquidated and you will be responsible for any resulting losses. To manage exposure, employ risk-reducing strategies such as ‘stop-loss’ or ‘limit’ orders.

Active trading, or day trading, can be extremely risky. Day trading on margin or short selling may result in losses beyond your initial investment.

You should consider the following points before engaging in a trading strategy. For purposes of this notice, a “trading strategy” means an overall trading strategy characterized by the regular transmission by a customer of orders to effect both purchase and sale transactions in the same security or securities.

Trading can be extremely risky.

Trading generally is not appropriate for someone of limited resources and limited investment or trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for day trading. In particular, you should not fund trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses.

Be cautious of claims of large profits from trading.

You should be wary of advertisements or other statements that emphasize the potential for large profits in trading. Trading can also lead to large and immediate financial losses.

Trading requires knowledge of securities markets.
Trading requires in-depth knowledge of the securities markets and trading techniques and strategies. In attempting to profit through trading, you must compete with professional securities firms. You should have appropriate experience before engaging in trading.

Trading may require knowledge of a firm’s operations.

It may help you to be familiar with a securities firm’s business practices, including the operation of the firm’s order execution systems and procedures. Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a stock suddenly drops, or if trading is halted due to recent news events or unusual trading activity. The more volatile a security is, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to system failures.

Day trading will generate substantial commissions, even if the per trade cost is low.

Day trading involves aggressive trading, and generally you will pay commissions on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings.