1. Introduction
This Risk Disclosure Policy is provided by RMFX Limited (trading as “Forexcm”) to help you understand the principal risks of trading leveraged products. It does not disclose every risk. You should not trade unless you fully understand the nature of the products and the extent of your exposure to risk, and you should consider seeking independent advice.
2. General Risk Warning
Trading Foreign Exchange (Forex) and Contracts for Difference (CFDs) involves significant risk and may not be suitable for all investors. You may lose some or all of your invested capital. You should not trade with money you cannot afford to lose.
3. Leverage and Margin
Leverage magnifies both gains and losses. A small market movement can have a proportionally larger effect on your account. If the margin in your account falls below the required level, your positions may be closed automatically at a loss (Stop Out). Higher leverage increases this risk.
4. Market Volatility
Prices of currencies, commodities, indices, stocks, bonds and cryptocurrencies can fluctuate rapidly and unpredictably due to economic data, central-bank decisions, political events, natural disasters and market sentiment. Volatility can lead to substantial losses within short periods.
5. Cryptocurrency Risk
Cryptocurrency CFDs are exceptionally volatile and may be affected by regulatory changes, technological failures, cyber-attacks and low liquidity. Prices can fall sharply and trading may be suspended. The company is conducting a legal and regulatory review of cryptocurrency margin trading and services may change as a result.
6. Gaps and Slippage
Markets may ‘gap’ when prices move sharply from one level to another without trading in between, for example over weekends or after news releases. Stop-loss orders do not guarantee execution at the specified price and may be filled at a worse level.
7. Liquidity Risk
Under certain conditions it may be difficult or impossible to open or close a position, for example during holidays, market suspensions or periods of extreme volatility, and spreads may widen significantly.
8. Over-the-Counter Products
CFDs are traded over-the-counter (OTC), not on a regulated exchange. We act as counterparty or route orders to liquidity providers. You are therefore exposed to counterparty risk and to prices set by us rather than an exchange.
9. Technology and Platform Risk
Trading online involves risks including hardware, software or internet failure, delays, and unauthorised access. Automated trading systems and Expert Advisors may behave unexpectedly. You are responsible for securing your devices and credentials and for monitoring your positions.
10. Currency Risk
Where you trade instruments denominated in a currency other than your account currency, exchange-rate movements will affect your profits and losses, and conversion fees may apply.
11. Costs and Charges
Spreads, commissions and overnight swap charges reduce your returns and may result in losses even on positions that move in your favour. Please review all charges before trading.
12. No Advice and No Guarantees
We provide execution-only services. Any information, analysis, tools or education are general and do not account for your personal circumstances. Past performance and hypothetical results are not reliable indicators of future results. No representation is made that any account will or is likely to achieve profits.
13. Bonuses
Bonuses do not reduce the risk of trading and may be subject to trading-volume requirements and deductions. You should never trade more than you would otherwise because of a bonus.
14. Taxation
You are responsible for any taxes arising from your trading. Tax treatment depends on your individual circumstances and may change; seek professional advice.
15. Acknowledgement
By opening an Account you confirm that you have read and understood this Risk Disclosure Policy and accept the risks of trading leveraged products.
This document is provided by RMFX Limited (trading as Forexcm), FSC License No: MC13/2024. In the event of any inconsistency between translations, the English version prevails.