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Risk Disclosure Statement
Margined Trading
Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account most of the forex brokers allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). The funds in an account that is being traded at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. For example, if one chooses to leverage up to the maximum 400 times account equity, then a margin of $1,000 may control an investment of $400,000. While a 1% upward swing of the positions held in the account may multiply into a $4,000 profit, a 1% downward swing multiplies into a $4,000 loss, i.e. greater than the initial investment. Thus, an account could lose more than the equity it contains. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital that, if lost, will not significantly affect the investor’s financial well-being.
Accuracy of Information
Forex-Managed.NET makes its best effort to keep the information on its website as current and accurate as possible. However, we still cannot guarantee the accuracy of said materials. No single source of information, including our website, should be used as the sole basis for any financial decision. We will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, nor for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website.
Internet Trading Risks
Furthermore, there are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, hardware malfunction, software failure, and Internet connection problems. Because we do not control signal power, reception or routing via Internet, the configuration of your equipment or the reliability of its connection, we cannot be responsible for communication failures, distortions or delays you may experience while trading via the Internet.
Market Risks
Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit your losses to the intended amounts, since market conditions, which can become extraordinarily volatile, may make it impossible to execute such orders. All positions involve risk, and strategies using combinations of positions, such as “spread” and “straddle” positions, may be as risky as taking simple “long” or “short” positions.
Exchange Rate Fluctuations
Exchange rates between foreign currencies can change rapidly due to a variety of economic and political events.
Distribution
This site is not intended for distribution or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. None of the services or investments referred to in this website are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of and comply with any local law or regulation to which they are subject.
Disclosure Regarding Bankruptcy Protections
The transactions you are entering into with any broker are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, your funds may not receive the same protections as funds used to margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange forex trading, if your broker becomes insolvent and you have a claim for amounts deposited or profits earned on transactions with your broker, your claim may not receive a priority. Without a priority, you are a general creditor and your claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even customer funds that your broker keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.
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