Risk Disclosure: Foreign Exchange Trading (Forex)

Before You Begin

Before deciding to participate in the Forex market, you should carefully consider the following:

• Your Investment Objectives: Clearly define your financial goals for trading Forex.
• Your Experience Level: Are you a beginner, intermediate, or experienced trader? Understanding your level of knowledge is crucial.
• Your Risk Tolerance: How much financial risk are you comfortable with? Forex trading can lead to significant losses.
• Your Investment Capital: Only invest funds that you can afford to lose without jeopardizing your financial well-being.

High-Risk Investment

Foreign exchange trading (Forex) carries a high level of risk and may not be suitable for all investors. Leverage, inherent in Forex trading, can magnify both profits and losses. You can lose more than your initial investment.

Understanding the Risks

• Market Volatility: Forex markets are highly volatile and can fluctuate rapidly due to economic, political, and social events.
• Leverage: Leverage allows you to control a larger position than your initial deposit, but it also magnifies potential losses. A small movement in the market can lead to a large loss of funds.
• Liquidity: While Forex is a highly liquid market, there is always the risk of limited liquidity in certain situations. This could make it difficult to enter or exit positions quickly at a desired price.
• Margin Calls: If the value of your position moves against you, you may be required to deposit additional funds (margin call) to maintain your position. Failure to meet a margin call can result in the liquidation of your position at a loss.
• Emotional Trading: Trading decisions made under the influence of emotions like fear or greed can lead to significant losses.
• Technical Knowledge: Successful Forex trading requires a strong understanding of technical analysis and fundamental factors.

Additional Risks

• Off-Exchange Transactions: There is considerable exposure to risk in any off-exchange foreign exchange transaction. This includes leverage, credit quality, limited regulatory protection, and market volatility that can materially affect the price or liquidity of a currency or currency pair.
• Technology Risks: There are risks associated with using an Internet-based trading system, including, but not limited to, failure of hardware, software, and Internet connection. While backup systems and contingency plans are in place to minimize the possibility of system failure, delays can still occur. Telephone trading is always available as an alternative.
• Information Accuracy: Any opinions, news, research, analyses, prices, or other information contained on donaldsonrf.com or provided by the broker IC Markets and IC Trading are for general market commentary only and do not constitute investment advice. Neither donaldsonrf.com nor IC Markets and IC Trading are responsible for any loss or damage arising from the use or reliance on such information. While I take reasonable steps to ensure accuracy, the content on donaldsonrf.com is subject to change at any time without notice.

Disclaimer

This information is not intended to be, and should not be construed as, investment advice. Past performance is not necessarily indicative of future results.

I am not responsible for any losses you may incur as a result of trading Forex.

Contact Me

If you have any questions about this Risk Disclosure, please contact me at info@donaldsonrf.com

Donaldson R F