This brief statement does not disclose all of the risks and other significant
ýaspects of trading in leveraged investments. In light of the risks, you should
undertake such transactions only if you ýunderstand the nature of the contracts
(and contractual relationships) into which you are entering and the extent of
your ýexposure to risk. You should carefully consider whether trading is
appropriate for you in light of your experience, ýobjectives, financial
resources and other circumstances.
ý
Forexial FX accepts no responsibility for the accuracy or completeness of any
information herein contained nor for any recommendations. Forexial FX shall not
be responsible for any loss arising from any investment based on any
recommendation or other information on the site.
Effect of ‘Leverage’ or ‘Gearing’: Transactions in OTC accounts carries a high
degree of risk. The amount of initial margin is small relative ýto the value of
the OTC contract so that transactions are ‘leveraged’ or ‘geared’. A relatively
small market movement will have a ýproportionately larger impact on the funds
you have deposited or will have to deposit; this may work against you as well as
for you. You ýmay sustain a total loss of initial margin funds and any
additional funds deposited with the firm to maintain your position. If the
market ýmoves against your position or margin levels are increased, you might be
required to deposit more funds to maintain your position. If the market moves
against ýyour position or margin levels are increased, you might be required to
deposit more funds on short notice to maintain your ýposition. If you fail to
deposit additional funds within the time prescribed, your position may be
liquidated at a loss.
ý
ýRisk-reducing orders or strategies: The placing of certain orders (e.g.
‘stop-loss’ order, where permitted under local law, or ‘stop-limit’ ýorders)
which are intended to limit losses to certain amounts may not be effective
because market conditions may make it impossible to ýexecute such orders.
Strategies using combinations of positions, such as ‘spread’ and ‘straddle’
positions may be as risky as taking simple ýý‘long’ or ‘short’ positions.
ý
ýTerms and conditions of contracts: Please ask us about the terms and conditions
of the specific currencies ýwhich you are trading and associated obligations
(e.g. the circumstances under which you may become obligated to make or take
delivery ýof the full currency value).
ý
ýSuspension or restriction of trading and pricing relationships: Market
conditions (e.g. illiquidity) and/or the operation of the rules of ýcertain
markets (e.g. suspension of trading in any currency because of price limits,
government intervention or "circuit breakers") may ýincrease the risk of loss by
making it difficult or impossible to effect transactions or liquidate/offset
positions.
ý
ýDeposited cash and property: You should familiarize yourself with the
protections accorded money or other property you deposit for ýdomestic and
foreign transactions, particularly in the event of a firm insolvency or
bankruptcy. The extent to which you may recover your ýmoney or property may be
governed by specific legislation or local rules. In some jurisdictions, property
which had been specifically ýidentifiable as your own will be pro-rated in the
same manner as cash for purposes of distribution in the event of a shortfall.
ý
ýCommission and other charges: Before you begin to trade, you should obtain a
clear explanation of all commission, fees, markups, ýmarkdowns, rollovers,
interest rate differential and other charges for which you will be liable. These
charges will affect your net profit (if ýany) or increase your loss.ý
ý
ýTransactions in other jurisdictions: Transactions on currencies of other
countries in other jurisdictions, including markets formally linked ýto a
domestic market may expose you to additional risk. Such markets may be subject
to regulation which may offer different or diminished ýinvestor protection.
Before you trade you should inquire about any rules relevant to your particular
transactions. Your local regulatory ýauthority will be unable to compel the
enforcement of the rules of regulatory authorities or markets in other
jurisdictions where your ýtransactions have been effected. Please ask for
details about the types of redress available in both your ýhome jurisdiction and
other relevant jurisdictions before you start to trade.
ý
ýCurrency risks: The profit and loss in transactions in foreign
currency-denominated contracts (whether they are traded in your own or ýanother
jurisdiction) will be affected by fluctuations in currency rate where there is a
need to convert from the currency denomination of ýthe contract to another
currency.ý
ý
ýTrading facilities: OTC business is not traded on a regulated market and
therefore does not require open-outcry. Even though quotations ýor prices are
afford by many computer-based component systems, the quotations and prices may
vary due to market liquidity. Many ýelectronic trading facilities are supported
by computer-based component systems for the order-routing, execution or matching
of trades. As ýwith all facilities and systems, they are vulnerable to temporary
disruption or failure. Your ability to recover certain losses may be subject to
ýlimits on liability imposed by the system provider, the market, the bank and/or
financial institution. Such limits may vary; please ask for details in this
respect. Forexial FX offers trading in CFDs on shares, market indices, and
futures; not trading in ýthe underlying instruments themselves. CFD trading with
Forexial FX therefore does not entitle the Trader to dividends, delivery, or
possibly ýcertain other characteristics of buying or selling the underlying
instrument. Furthermore, CFD and Foreign Exchange trading with Forexial ýFX is
not conducted on any futures or stock exchange and is not subject to the rules
of any futures or stock exchange.
ý
ýElectronic trading: Trading on an electronic trading system may differ not only
from trading in the Interbank market but also from ýtrading on other electronic
trading systems. If you undertake transactions on an electronic trading system,
you will be exposed to risks ýassociated with the system including the failure
of hardware and software. The result of any system failure may be that your
order is either ýnot executed according to your instructions or is not executed
at all.
ý
Internet and System failures: Since Forexial FX does not control signal power,
its reception or routing via Internet, configuration of your ýequipment or
reliability of its connection, we cannot be responsible for communication
failures, distortions, delays, when you trade online ýý(via Internet).
Furthermore, any losses or foregone profits in Trader's account are the
responsibility of the Trader and not Forexial FX, even ýif software, hardware,
or other system failures or errors contributed to such losses or foregone
profits.
ý
Market risks and online trading: Trading currencies involves substantial risk
that is not being suitable for everyone. Carefully examine the Individual
Trading ýAgreement for more detailed description of risks. Trading online, no
matter how convenient or efficient, does not necessarily reduce risks
ýassociated with currency trading.
ý
Password protection: The Trader is obligated to keep passwords secret and ensure
that third parties do not obtain access to the trading ýfacilities. The Trader
will be liable to Forexial FX for trades executed by means of the Trader’s
password even if such use may be wrongful.
ý
Quoting errors: Should quoting errors occur due to a dealer’s mistype of a
quote, errors in an automatic price feed, or an erroneous price ýquote from a
dealer, such as but not limited to a wrong big figure quote, Forexial FX will
not be liable for the resulting errors in account ýbalances. Forexial FX
reserves the right to make the necessary corrections or adjustments on the
account involved. Any dispute arising from ýsuch quoting errors will be resolved
on a basis of a fair market value of a currency or CFD at the time such an error
occurred.