Trading in financial products (such as forex, contracts for differences, shares, options, warrants or certificates) involves a high level of risk and is therefore not suitable for security-conscious investors. Especially trading with leverage involves a high risk. The high leverage effect can work for you, but also against you. Carefully consider your investment or speculation objectives, financial situation, risk tolerance, needs, experience and knowledge of the subject matter before you start trading online in the financial markets or on over-the-counter trading platforms.
There is always a correlation between high profit and high risk. Any type of trading and speculation with financial products that can generate an unusually high profit (yield) means an equally high risk.
Please note that past profits are no guarantee for positive results in the future. You can lose all or part of your capital investment in speculative trading with foreign exchange, contracts for difference or options. Only trade with money that you can easily afford to lose. Be aware of all risks associated with online trading of financial products.
Trading in Financial Instruments on Margin involves a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, experience and risk tolerance. There is a possibility that you could lose part or all of your investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks involved in trading financial products and, if in doubt, seek advice from an independent financial advisor.
Currency trading is speculative and volatile
Prices in foreign currency are very volatile. Price movements for currencies are influenced by factors such as: changing supply and demand relationships; trade, tax, currency and exchange control programs and policies of governments; political and economic events and policies in the United States and abroad; changes in interest and inflation rates; currency devaluations and revaluations; and market emotions. None of these factors can be controlled by any market participant and there can be no assurance that any strategy will result in profitable transactions for any investor or that any investor will not incur losses. Account leverage amplifies the impact of currency volatility on the margin requirements of open positions.
Risk reducing orders or strategies
The placement of certain orders (e.g. “stop-loss” orders or “stop-limit” orders) designed to limit losses to certain amounts may sometimes be ineffective because market conditions may make it impossible to execute such orders.
Suspension or restriction of trading and pricing relationships
Market conditions (e.g. illiquidity and/or the application of the rules of certain markets (e.g. suspension of trading in contracts due to price limits, government intervention or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to execute transactions or liquidate/offset positions.
Commissions and other fees
Before you begin trading, you should obtain a clear explanation of all commissions, fees, overnight swaps, markups, discounts and other charges for which you are liable. These fees will affect your net profit (if any) or increase your loss.
The profit or loss on transactions involving contracts denominated in foreign currencies (whether they are traded in your own or another jurisdiction) is affected by exchange rate fluctuations when a conversion from the currency denomination of the contract to another currency is required.
Internet Trading Risks
The use of an Internet-based trading system for the execution of transactions involves risks, including but not limited to the failure of hardware, software and Internet connection. Because Easy Hedge Fund has no control over signal strength, the reception or routing of signals over the Internet, the configuration of your equipment or the reliability of the connection, we cannot be responsible for communication failures, distortions or delays in trading over the Internet. Easy Hedge Fund uses backup systems and contingency plans to minimize the possibility of system failure.
No representation can be made as to the stability, financial strength, capitalization or credibility (past, present or future) of the selected banks, institutions, prime brokers, liquidity providers, clearing houses, law firms, consultants, accounting firms or other related partners selected by Easy Hedge Fund . Easy Hedge Fund is not responsible for any act, omission, error or misconduct of the selected Partners that may adversely affect the Client’s account(s) or otherwise be beyond Easy Hedge Fund sole control.
The representatives of Easy Hedge Fund cannot give any guarantees of profit or loss.
This brief document cannot disclose all risks and material aspects of the foreign exchange markets. You should therefore read this document carefully before participating in any capacity and seek independent professional advice if necessary.
Easy Hedge Fund is committed to transparency and integrity and is always ready to help potential investors understand various issues and make informed decisions. Please do not hesitate to contact us if you have any further questions.