RISK DISCLOSURE

 

Prospective clients should study the following risk warnings very carefully. Please note that we do not explore or explain all the risks involved when dealing in Financial Instruments. We outline the general nature of the risks of dealing in Financial Instruments on a fair and non-misleading basis.

Unless a client knows and fully understands the risks involved in each Financial Instrument, they should not engage in any trading activity. You should not risk more than you are prepared to lose. FxToday will not provide clients with any investment advice concerning investments, possible transactions in investments, or Financial Instruments, nor will we make any investment recommendations. Clients should consider which Financial Instrument is suitable for them according to their financial status and goals before opening an account with FxToday. If a client is unclear about the risks involved in trading in Financial Instruments, they should consult an independent financial advisor. If the client still does not understand these risks after consulting an independent financial advisor, they should refrain from trading at all. Purchasing and selling Financial Instruments comes with a significant risk of losses and damages, and each client must understand that the investment value can both increase and decrease. Clients are liable for all these losses and damages, which could result in more than the initial invested capital once they have made the decision to trade.

 

ACKNOWLEDGEMENT

 

TECHNICAL RISK

 

The Customer shall be responsible for the risks of financial losses caused by the failure of information, communication, electronic, and other systems. The result of any system failure may be that the order is either not executed according to their instructions or not executed at all. The Company does not accept any liability in the case of such a failure. While trading through the client terminal, the Customer shall be responsible for the risks of financial losses caused by:

• The customer’s or the Company’s hardware or software failure, malfunction, or misuse.
• Poor internet connection either on the side of the Customer or the Company or both, or interruptions or transmission blackouts, public electricity network failures, hacker attacks, or an overload of connection.
• Incorrect settings in the client terminal.
• Delayed client terminal updates.
• The Customer disregarding the applicable rules described in the client terminal user guide and the Company’s website.

The Customer acknowledges that at times of excessive deal flow, they may have some difficulties being connected over the telephone with a dealer, especially in a fast market (for example, when key macroeconomic indicators are released).

 

ABNORMAL MARKET CONDITIONS

 

The Customer acknowledges that under abnormal market conditions, the period during which the instructions and requests are executed may be extended.

 

TRADING PLATFORM

 

The Customer acknowledges that only one request or instruction can be in the queue at one time. Once the Customer has sent a request or an instruction, any further requests or instructions sent by the Customer are ignored, and the “Order is locked” message appears until the first request or instruction is executed.

 

COMMUNICATION

 

The Customer shall accept the risk of any financial losses caused by the fact that they have received delayed or have not received at all any notice from the Company.

The Customer acknowledges that the unencrypted information transmitted by email is not protected from unauthorized access.

The Customer is fully responsible for the risks in respect of undelivered trading platform internal mail messages sent to the Customer by the Company, as they are automatically deleted within 3 (three) calendar days.

 

FORCE MAJEURE EVENT

 

In the case of a force majeure event, the Customer shall accept the risk of financial losses.

 

RISK WARNING NOTICE FOR FOREIGN EXCHANGE AND DERIVATIVE PRODUCTS

 

This notice cannot disclose all the risks and other significant aspects of foreign exchange and derivative products such as futures. You should not deal with these products unless you understand their nature and the extent of your risk exposure. You should also be satisfied that the product is suitable for you in light of your circumstances and financial position.

 

EFFECT OF LEVERAGE

 

Under margin trading conditions, even small market movements may have a great impact on the Customer’s trading account. It is important to note that all accounts trade under the effect of leverage. The Customer must consider that if the market moves against them, they may sustain a total loss greater than the funds deposited. The Customer is responsible for all risks, financial resources used, and for the chosen trading strategy.

It is highly recommended that the Customer maintains a margin level (percentage equity to necessary margin ratio which is calculated as equity / necessary margin * 100%) of not lower than 1,000%. It is also recommended to place a stop-loss to limit potential losses and take profit to collect profits when it is not possible for the Customer to manage open positions.

 

HIGH VOLATILE INSTRUMENTS

 

Some Instruments trade within wide intraday ranges with volatile price movements. The price of derivatives financial instruments is derived from the price of the underlying asset to which the instruments refer (for example, currency, stock, metals, indices, etc.). Derivative financial instruments and related markets can be highly volatile.

 

FUTURES

 

Transactions in futures involve the obligation to make or take delivery of the underlying asset of the contract at a future date, or in some cases to settle the position with cash. They carry a high degree of risk.

 

FOREIGN MARKETS

 

Foreign markets involve various risks. The potential for profit or loss from transactions on foreign markets or in foreign-denominated contracts will be affected by fluctuations in foreign exchange rates.

 

CONTINGENT LIABILITY INVESTMENT TRANSACTIONS

 

If you trade in futures, you may sustain a total loss of the funds you have deposited to open and maintain a position. If the market moves against you, you may be called upon to pay substantial additional funds at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss, and you will be responsible for the resulting deficit.

 

COMMISSIONS AND TAXES

 

Before you begin to trade, you should make yourself aware of all commissions and other charges for which you will be liable. There is a risk that the Customer’s trades in any Financial Instruments including derivative instruments may be or become subject to tax and/or any other duty due to changes in legislation or personal circumstances.

 

INSOLVENCY

 

The Company’s insolvency or default may lead to positions being liquidated or closed out without your consent. Segregated funds will be subject to the protections conferred by applicable regulations. Non-segregated funds will not be subject to these protections and will be used during the Company’s business. In the event of the Company’s insolvency, you will rank as a general creditor.

 

THIRD-PARTY RISK

 

The Company has no responsibility for any acts or omissions of any third party to whom it will pass money received from the Customer. The third party to whom the Company will pass money may hold it in an omnibus account, and it may not be possible to separate it from the Customer’s money.

 

RISK DISCLAIMER

 

Trading Futures, Options on Futures, and FOREX involves substantial risk of loss and is not suitable for all investors. Opinions, market data, and recommendations are subject to change without notice. Past performance is not indicative of future results.