This brief statement does not disclose all of the risks and other significant aspects of spot foreign currency and options trading (collectively “Forex”). In light of the risks, you should undertake such transactions only if you (“Trader” or “Client”) understand the nature of the trading into which you are about to engage and the extent of your exposure to risk. Trading in Forex is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.
Spot Forex Trading 1. Effect of "Leverage" or "Gearing"
Forex Transactions carry a high degree of risk. The amount of Initial margin may be small relative to the value of the foreign currency so that transactions are 'leveraged' or 'geared'. A relatively small market movement may have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit. 2. Risk-reducing orders or strategies
The placing of certain orders (e.g., "stop-loss" orders, where permitted under local law, or "stop limit" orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it Impossible to execute such orders. Strategies using combinations of positions, such as "spread" and "straddle" positions, may be as risky as taking simple "long" or "short" positions.