TRADING IN CURRENCIES AND LEVERAGED CONTRACTS SUCH AS FX CONTRACTS MAY NOT BE SUITABLE FOR ALL MEMBERS OF THE PUBLIC.
You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other circumstances. Currency trading and the undertaking of such transactions should only be done if you understand the nature of Fx Contracts and the contractual relationship into which you are entering and to the extent of your exposure to risk.
- Effect of 'Leverage' or 'Gearing': Transactions in Currencies and FX CONTRACTS carry a high degree of risk. The amount of initial margin is small relative to the value of the FX CONTRACT so that transactions are' leveraged' or 'geared'. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. If the market moves against you, you may sustain a total loss of funds deposited.
- Risk-reducing orders or strategies: The placing of certain orders (e.g. 'stop-loss' order) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as 'spread' and 'straddle' positions may be as risky as taking simple 'long' or 'short' positions.
- Suspension or restriction of trading and pricing relationships: Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. suspension of trading in any currency because of price limits, government intervention or "circuit breakers") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.
- Deposited cash and property: You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.
- Commission and other charges: Before you begin to trade, you should obtain a clear explanation of all commission, fees, markups, markdowns, rollovers, interest rate differential and other charges for which you will be liable. These charges will affect your net profit (if any) or increase your loss.
- Transactions in other jurisdictions: Transactions on currencies of other countries in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should inquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected.
- Currency risks: The profit and loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.
- Trading facilities: FX CONTRACTS business is not traded on a regulated market and therefore does not require open-outcry. Even though quotations or prices are afforded by many computer-based component systems, the quotations and prices may vary due to market liquidity. Many electronic trading facilities are supported by computer-based component systems for the order routing, execution or matching of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the bank and/or financial institution.
- Electronic trading: Trading on an electronic trading system may differ not only from trading in the interbank market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all.
Checking the appropriate box on the corresponding online application serves as your signature for approving this document.
- Internet failures: Since FinOdds does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when you trade on-line (via Internet).
- Market risks and on-line trading: Trading currencies involves substantial risk that is not suitable for everyone. Trading on-line, no matter how convenient or efficient, does not necessarily reduce risks associated with currency trading.
- Password protection: The Client is obligated to keep passwords secret and ensure that third parties do not obtain access to the trading facilities. The Client will be liable to FinOdds for trades executed by means of the Client's password even if such use may be wrongful.
- Quoting errors: Should quoting errors occur due to a dealer's mistype of a quote or an erroneous price quote from a Client or any other reason, such as but not limited to a wrong bid figure quote, FinOdds will not be liable for the resulting errors in account balances. FinOdds reserves the right to make the necessary corrections or adjustments on the Account involved. Any dispute arising from such quoting errors will be resolved on a basis of a fair market value of a currency at the time such an error occurred.