This brief statement does not disclose absolutely all types of risk and other significant aspects when making transactions to change foreign exchange ratios with leverage. You must understand the nature of transactions and the risks associated with this and consider your own capabilities.
- The effect of leverage or “leverage”. Transactions carried out on game accounts contain a high degree of risk. The amount of the initial collateral is significantly less than the minimum transaction in the foreign exchange market, therefore.
- Risk limit or strategy warrants. Placing certain orders (for example, a stop-loss order, or stop-limit orders) that are designed to limit losses within certain amounts may be ineffective, as market conditions may make it impossible to execute such an order / order.
ADDITIONAL RISKS GENERAL ON FOREX
- Commission and other expenses. Before you begin to conclude transactions, you should receive a clear explanation of all the commissions, fees, margins, discounts and other expenses for which you will have to bear the costs. These costs will affect your net profit or increase your loss.
- Currency risks. Profit or loss on transactions depends on fluctuations in currency quotes, where there is a need to convert one currency to another.
- Means of conclusion of transactions. Like all tools and systems, they are vulnerable and prone to temporary malfunctions or breakdowns. Such limits may vary, so you should ask the company you are dealing with for details on this subject.
- Electronic commerce. Trading in an electronic trading system may differ not only from trading in the interbank market. But also from trading in other electronic trading systems.The result of any system failure may be that your order either fails to fulfill according to your instructions or fails at all.