Trading Forex instruments may not be suitable for all investors. You will be able to lose a substantial amount of wealth in a short period of your time. The wealth you can lose is potentially unlimited and may lose your all-deposited money with your Market Equity account. This is because small investments and high leverage are used to establish a position in assets having a much greater value. If you are uncomfortable with this level of risk, you can avoid trading forex instruments with high leverage. You must be aware that the regulatory protections applicable to your account are not insured you against losses you may incur because of a decline or increase in the prices. As with all financial products, you are solely responsible for any losses in your account.

GENERAL RISKS

The information on this site is not directed at residents of the United States. It is not intended for distribution to, or use by, anyone in any country or jurisdiction where use would be against local law or regulation.

As with any high-risk financial product, you must not risk any funds that hard-earned you cannot afford to lose, like your retirement savings, medical and other emergency funds, make a separate fund for purposes such as education or homeownership, proceeds from student loans or mortgages, or funds required to satisfy your living expenses.

Be cautious of claims that you just can make large profits from trading Forex. Although the high leverage can result in large and immediate gains, it may also lead to large and immediate losses. Like any financial product, there is no such thing as a “sure winner.”

You can feel the effects of your losses immediately due to leverage. Gains and losses are credited or debited to your account’s equity in real-time mode. If movements in the markets decrease, the value of your positions decreases also, and you may be required to fund your account as a margin. If your account is under the minimum margin requirements set by the company, your position may be liquidated at a loss, and you will be liable for the deficit in your account.

The prices of Forex trading instruments might not maintain their customary or anticipated relationships to the value of the underlying asset. These pricing disparities could occur, as an example, when the marketplace for the actual Forex instrument is illiquid, when the main market for the underlying asset is closed, or when the reporting of transactions within the underlying asset has been delayed. For index products, it could also occur when trading is delayed or halted in some or all the securities that create the index.

All trading instruments involve risk, and there is no trading strategy that may eliminate it. Strategies using combinations of positions like spreads could also be as risky as long or short positions. Trading in Forex instruments requires knowledge of all relevant markets.

You should read and understand our “Customer Agreement” and “Terms and conditions” published on our Website before entering any transaction.

MARGIN AND LEVERAGE

Margin” is basically the amount of money that the investor should have in his account We require our clients to deposit this amount in their accounts before opening any position.

The margin required to open a position is a percentage of the total value of the unit purchased or sold. Leverage allows traders to open larger positions than the capital they have initially deposited in their account allowing them to and get a bigger exposure to the financial market and thus generate more profits from the trade. As traders use high leverage to get more profits, they can also come out with big losses.

RISK OF MARGIN TRADING

Every trader must understand that when trading forex on margin, he may expose himself to a certain degree of risk which can lead to a bigger loss than the initial amount he has deposited in his account.

REQUIREMENTS TO MAINTAIN SUFFICIENT MARGIN

When you are trading on Margin, you are required to maintain a fixed percentage of the equity as requested by the broker. Its general formula is available on our website and may not reflect the actual Requirements at a particular time for your portfolio.

The margin required by Market Equity may exceed the margin required by any exchange firm. Market Equity may modify such Margin Requirements for any of your open and new positions, at any time. Market Equity may reject any of your orders if you do not have a sufficient free Margin to meet Margin Requirements and may delay any order while determining the correct margin status of your account. You must maintain, without notice or demand from Market Equity a sufficient account balance always to continuously meet the Margin Requirements. As set forth herein, you must submit all payments to satisfy Margin Requirements directly to Market Equity in accordance with the instructions set on its website.

MARGIN CALLS

The Margin call is generally a signal that one of the instruments has decreased in value and that your equity starts to fall below the requirement of the broker.

LIQUIDATION OF POSITIONS (SHORT MARGIN OR STOP OUT)

When your account balance reaches zero equity or does not have a sufficient balance to meet the Margin Requirements, or when your “Customer Agreement “is terminated, the company has the full right to liquidate all or any of your opened positions whether carried individually or jointly at any time and without prior notice. You will be the only responsible and you will also have to reimburse and hold the company not responsible for all omissions, expenses, fees, penalties, losses, and liabilities associated

ACCOUNTS DEFICITS

For any deficit in any of your accounts that continues to be unpaid, you have to comply with pay and be responsible for all the costs and expenses of collection of the debit balance, including, but not limited to, attorneys’ fees and/or collection agent fees.

FUTURES SETTLEMENTS

Any unpaid deficit in any of your trading accounts must be paid and the trader is the only one responsible for all the expenses, including, but not limited to, attorneys’ fees and the collection of the agent fees.

SPECIAL RISKS FOR DAY TRADERS

Day trading is the strategy of opening and closing multiple trades within the same day before the market closes trying to take advantage of price fluctuations and make profits. Day traders must have good knowledge and experience in forex as it is highly risky and may lead to big losses.

Under certain market conditions, you will find it difficult or impossible to liquidate or close a position quickly at a good price. For example, when the market suddenly drops, or if trading is halted because of recent news events or unusual trading activity. The more volatile a market is, the higher the problems when executing a transaction

During Day trading you must pay a commission on each trade you open on certain markets, as specified by Market Equity.

CORPORATE EVENTS

The purchaser of a CFD doesn’t receive corporate disclosures like the shareholders. Treatment of dividends and other corporate events affecting the underlying security might not be reflected within the CFD according to the company rules and policies.

Consequently, individuals should consider how dividends and other developments affecting CFDs within which they transact are going to be handled by the relevant exchange. The adjustments of the terms of an underlying asset are governed by the principles of the applicable exchange.

TAX CONSEQUENCES

The trader can consult his tax advisor regarding the tax consequences of these transactions.

SLIPPAGE

orders may be subject to slippage. Slippage is the time difference between when the trader places his order and when the order is executed. This happens because of high market volatility, during new economic releases, or when a Gap occurs when the market reopens.

DELAYS IN EXECUTION

A delay in execution may occur for various reasons, like technical issues with the trader’s internet connection. A disturbance within the connection path can sometimes interrupt the signal, and disable the Trading Station, causing delays in the transmission of information between the Trading Station and our server.

STOP LOSS

A Stop loss order is really a limit order.

Stop loss is an order placed and defined by the client while opening or closing a position on the market. Most investors use the stop-loss order tool to manage their risk and prevent themselves from being exposed to any extra loss when the price drops. Some currencies or instruments as commodities and indices which are not traded on a 24-hour basis may face a market gap and therefore are more vulnerable to slippage. These instruments can be executed with a stop-loss order at the best market rate. The only exception will be when there is rate volatility during market hours due to certain economic news, trading halts, or significant events that may occur during the weekend.

ROLLOVER COSTS

They are the charges applied to a trader’s account when the price of the contract of the underlying asset held overnight changes to the new contract price. This change can be profitable for the trader as it can lead to losses depending on whether the new price is higher or lower than the previous contract price.

Rates Errors

In some rare occasions, trading can be disrupted for a short period of time. When it does, spreads often become affected. We request from our clients avoid placing orders. If trades are executed at rates not actually offered by Market Equity, we reserve the right to decline such trades, as they are not considered valid trades.

HOLIDAYS/WEEKEND EXECUTION

The international Forex market opens Sunday at midnight and closes Friday at midnight. During summer, these hours change. The opening or closing hours can also be changed by the broker depending on the prices offered by financial institutions. The lack of liquidity and volume during the weekend can affect price execution. The servers of our MT5 trading platform follow GMT + 2 with DST enabled.

PRICES UPDATING BEFORE THE OPENING

Shortly before to the opening of the market, the prices are updated to reflect the current market price. Trades and orders held over the weekend may well be executed. After the opening, traders can place new orders, cancel, or modify their existing ones.

LIQUIDITY

When Forex Markets are narrow, it may result in exposure to wider spreads since the number of buyers and sellers is less. During this period, no fixed spreads are guaranteed to clients.

GAPPING

The opening prices may differ from the closing prices. The market may encounter a gap in case of news announcements or economic events. Traders holding positions or orders over the weekend should be fully aware of the possibility of the market gap. One of the best things about trading Forex is that the trading hours routinely close on the weekends, which corresponds with the hours of major banks and financial institutions. In contrast, most stock exchanges close five times each week, and might gap significantly on each day’s opening.

WEEKEND RISK

Traders who fear that the markets could also be extremely volatile over the weekend, that gapping may occur, or that the potential for weekend risk isn’t appropriate for their trading style, may close out orders and positions before the weekend.

INDICATIVE PRICES DISPLAYED ON THE PLATFORM

The trader must know the difference between indicative prices (displayed on charts) which are the market prices and the tradable prices (displayed on the Trading platform). These prices are taken from financial institutions. Indicative prices are usually very near to dealing prices. Equity and futures traders are used to prices being identical at any given time, no matter which firm they’re trading through or which charting provider they’re using—and they often assume the identical holds true for spot Forex. Because the spot Forex market is decentralized, Forex brokers may quote slightly different prices. Therefore, any prices displayed by a third party that doesn’t employ the market maker’s price, will reflect “indicative” prices and not necessarily actual “dealing” prices where trades may be executed.

INTERNET RISK AND TECHNOLOGY

The trader must realize that there are risks related to his use of technology and Internet means represented in interruption, disruption, delay, hackers attempts, data stealing and other risks that require the trader to take all measures to confront them and reduce the risks.

BANKRUPTCY RISK

All the companies and banks are exposed to risks related to bankruptcy, seizure, and other actions that may pose a risk to their funds

RISKS OF WARS, NATURAL DISASTERS, AND FORCE MAJEURE

Trading may be subject to irregularity, interruption, or disruption and other procedures that prevent stability like to wars and natural disasters.

SWAP

If the customer is misusing or abusing the swap, then the company has the right to charge the abusing customer 10$ per standard lot.