Risk disclosure statement
The present risk disclosure statement is intended to present to you risks and warnings in connection with foreign exchange trading, indexes and other financial instruments (Hereinafter: Foreign Exchange Trade). Foreign Exchange Trade, while using investment leverages, is considered speculative trade with a high level of risk of losing the money invested, in whole or in part. Therefore, Foreign Exchange Trade is suitable for persons that are knowledgeable in this field and are familiar with the principles and terms governing this field as well as for persons that are well aware of the risks involved in this kind of trade.
Since the Foreign Exchange Trade services offered by the Company are suitable only for persons that are aware of the risks involved in such trade and the risk to lose the entire amount of securities in such trade within a short period of time, you are required to consider seriously whether such trade is suitable for you taking into account the knowledge you have, your financial needs and requirements and your personal circumstances. Among other things, you should pay attention and consider carefully the relevance of the following issues on you:
- Fluctuations in foreign currency rates and financial markets are influenced by present exchange rates and differences in the interest rates between the different currencies. Sometimes these changes are extreme, in a manner that does not enable to predict the degree of change, its direction or the periods in which it takes place.
- High investment leverage results in the situation in which a small change in the market prices, sometimes within a short period of time, leads to significant gains or losses in relation to rate of the security you deposited with the Company and may even result in complete loss of the entire amount within a short period of time.
- When making a transaction in connection with the services rendered by the Company concerning Foreign Exchange Trade, a component of cost is also included and manifested in the difference between the purchase and selling price offered for trade in connection with the financial instruments involved in the transaction. This cost component, when accumulated, might have a significant effect.
- The Company may publish general and/or news information as to foreign currency rates or other financial instruments, including information published by information sources available to the public. You should be aware that such information, originating in external sources as said, is not controlled or supervised by the Company. Therefore such information might prove to be unreliable and/or insufficient for any purpose and especially for the purpose of examining the feasibility of performing a transaction or avoidance thereof. In addition, such information does not constitute consultation, recommendation, opinion or encouragement to use the Company’s services in general or enter into a transaction in particular. The Company shall not be held liable for the content and/or reliability of such information.
- In light of the nature of Foreign Exchange Trade, it is recommended that you invest in such option only with capital that you can afford to lose and you should completely avoid risking capital that is used for savings purposes or your subsistence and personal needs.
- To the extent that that you have doubts whether Foreign Exchange Trade is suitable for you, you should consult with an independent financial consultant. The Company does not provide any kind of financial consultation including in connection with anything pertaining to the feasibility of a transaction and/or avoidance thereof and/or tax considerations.
- Foreign Exchange Trade is based upon and executed by computer, communications and internet networks. Therefore trade in the system might stop or discontinue without advance notice due to reasons that are beyond the Company’s control. Under circumstances of discontinuation of trade the Company may, yet not be obligated to, close open transactions without giving advance notice to clients, in fair prices that reflect the market values at the time, and the client shall make no claim or allegation against the Company concerning this matter; the Company shall not be held liable for any damage caused to the client due to a force majeure event or any other event that was beyond the Company’s control while trade was implemented in the system; you should be aware of the fact that even if your computer is not connected to the system trade activities still continue.
- It is recommended to obtain knowledge as to the operation of trade software since a wrong action or failure to know the necessary commands may result in losses.
- The client is responsible to check and ensure that his use of the Foreign Exchange Trade is not in violation of any law or rule applicable to him. In addition, the client ought to ensure that he upholds any other legal duty imposed upon him and that derives from the use of the trade system. Full liability for performance of a transaction or avoidance thereof including all transactions involving deposits and withdrawals with credit cards, and keeping access passwords to the client’s account lies with the client.
- Recognized investment laws and rules do not apply to Foreign Exchange Trade and futures and therefore it exposes you to higher and more significant risks. The potential for loss or gain in Foreign Exchange Trade is influenced by changes in international currency rates that are influenced, among other things, by political or economical changes of the foreign state whose currency is traded, and they might affect significantly and determine the circumstances, conditions and prices of that currency or index. Extreme market conditions or different technological limitations might result in a situation that different trade instructions (such as "stop loss" or "limit") are not always accepted or practicable and therefore, when such instructions are concerned the client may incur the losses (losses that the aforesaid instructions were to prevent) within a short period of time.
- The Company does not undertake to continue to offer the same currencies and/or financial instruments at all times and it may not offer the same in the future.
- The Company does not have control over changes in the underlying asset prices quoted in the inter-banking market in the markets where trade is performed, and that may be fluctuating and unstable. The prices offered by the Company are affected by these fluctuations irrespective of the client’s ability to open or close a deal and the price thereof. A period of intense fluctuations might lead to a situation in which the Company cannot realize an existing deal for the client, estimate the value of an open deal or set the fair value or risk exposure. The Company’s rates are indicative and binding and they are not necessarily identical in all foreign exchange companies.
- The client should be aware that the Foreign Exchange Trade offered by the Company is not subject to the activities of an audited stock exchange and there is no clearing house or a third party entity that ensure the monetary undertakings of the Company towards the client in connection with the transactions the client made. In the event of insolvency or avoidance from repayment, are client may suffer a loss.