Risk Disclosure

General Risk Warning

Contracts for Difference ('CFDs') are complex financial products that are traded on margin. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital.

Key Risks

1. Leverage Risk

While leverage allows you to trade with more capital than you deposit, it also magnifies both profits and losses. A small market movement can have a proportionally larger impact on the funds you have deposited.

2. Market Risk

Financial markets can be volatile and unpredictable. Prices can move rapidly, especially during news events, and gaps in pricing can occur, particularly over weekends.

3. Liquidity Risk

In certain market conditions, it may be difficult or impossible to execute trades at desired prices. This is particularly relevant for exotic currency pairs and during low-liquidity periods.

4. Counterparty Risk

When you trade CFDs, you are trading with the broker as your counterparty. The broker's financial stability and regulatory status are important considerations.

5. Operational Risk

Technical failures, platform issues, or connectivity problems can affect your ability to manage positions in a timely manner.

Important Considerations

• Only invest money you can afford to lose entirely
• Educate yourself about the products before trading
• Use risk management tools such as stop-loss orders
• Start with a demo account to practice
• Seek independent financial advice if unsure
• Understand that past performance doesn't guarantee future results

Regulatory Information

FxTrusts provides technology solutions to licensed brokerages. We are not a broker ourselves and do not solicit or accept retail trading accounts. Our clients are regulated financial institutions that must comply with their respective jurisdictional requirements.

Last Updated: December 2024
For questions about this disclosure, contact: business@fxtrusts.com