HIGH RISK INVESTMENT
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your deposit and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
You should not engage in speculative spot forex or CFD trading unless you understand the basic aspects of such trading and its risks.
– for example, how positions are opened and closed, how profits and losses are made and the extent of your exposure to risk and loss.
Trading in spot Forex and CFDs is speculative and involves a high degree of risk. In particular because it will be conducted using margin (which covers only a small percentage of the value of the foreign currency traded), price changes in spot Forex or CFD can result in significant losses.
Therefore, trading in these contracts is appropriate only for persons who understand and are willing to assume the economic, legal and other risks involved in such transactions. You should be satisfied that spot forex and CFD trading is suitable for you in the light of your financial circumstances and attitude to risk. If you are in any doubt as to whether spot forex or CFD trading is suitable for you, please seek independent advice from a financial services professional. ElectronicCommunicationNetwork.com does not provide such advice.
When you engage in CFD or spot forex trading you are placing a trade in relation to movements of prices set by forex brokers here advertised Prices quoted to you by forex brokers here advertised will include a spread, mark-up, or mark-down when compared to prices that
ElectronicCommunicationNetwork.com may receive or expect to receive if it were to cover transactions with you by a trade in the interbank market or with another counterparty.
The “gearing” or “leverage” available in CFDs and spot forex trading (i.e. the funds you are required to provide when a position is opened compared to the notional size of trade you can enter into) means that a small margin deposit can lead to large losses as well as gains. It also means that a relatively small movement can lead to a proportionately much larger movement in the size of any loss or profit which can work against you as well as for you.
You may lose all amounts you deposit with forex brokers here advertised as Margin. The placing of certain orders (e.g. “stop-loss” or “limit” orders) that are intended to limit losses to certain amounts may not always be effective because market conditions or technological limitations may make it impossible to execute such orders. Please also note that for all orders (including guaranteed stop loss orders) you may sustain the loss (which your order is intended to limit) in a short period of time.
You have to pay to the forex brokers here advertised all losses you sustain as well as all other amounts payable under the terms and conditions for trading spot forex and CFDs such as interest. If you decide to engage in CFD and/or spot forex trading, you must accept this degree of risk.
CFDs and spot forex trades are not traded under the rules of a recognized or designated investment exchange. Consequently, engaging in CFDs and/or spot forex trading may expose you to substantially greater risks than investments which are so traded.
The potential for profit or loss from transactions on foreign markets or in foreign denominated contracts are affected by fluctuations in foreign exchange rates. Transactions involving foreign currencies, including CFDs and/or spot forex trading, involves risks not present when dealing with investments denominated entirely in your domestic currency. Such enhanced risks include (but are not limited to) the risks of political or economic policy changes in a foreign nation, which may substantially and permanently alter the conditions, terms, marketability or price of a foreign currency. The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will also be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.
You can only engage in CFD and/or spot forex trading with the forex brokers here advertised in currencies they make available.