CRITICAL WARNING: Trading foreign exchange (Forex) and contracts for difference (CFDs) on margin carries an EXTREMELY HIGH LEVEL OF RISK and may not be suitable for all investors. You could sustain a TOTAL LOSS of your invested capital. You should NEVER invest money that you cannot afford to lose entirely.
High Risk Investment: Forex and CFD trading involves significant risk of loss. The high degree of leverage available in these markets can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
Market Volatility: Financial markets are inherently unpredictable. Prices can change rapidly and unpredictably due to countless factors including but not limited to: economic news releases, central bank decisions, geopolitical events, natural disasters, market sentiment, liquidity conditions, flash crashes, and factors that cannot be anticipated or controlled.
Technical Risks: Algorithmic trading systems are subject to numerous technical failures including but not limited to:
- Internet connectivity issues or complete outages
- Server downtime, crashes, or hardware failures
- Broker platform outages, maintenance, or technical issues
- Software bugs, glitches, or unexpected behavior
- Execution delays, slippage, or requotes
- Data feed errors or incorrect price quotes
- Power outages affecting any part of the system
- Cyber attacks or security breaches
Additional Risk Factors:
- You may lose MORE than your initial deposit due to leverage
- Leverage amplifies both gains AND losses exponentially
- Market gaps can cause losses far exceeding stop-loss levels
- No trading system is profitable 100% of the time - losses are inevitable
- Broker spreads, commissions, and swap rates reduce profitability
- Regulatory changes may affect trading conditions at any time
- Broker insolvency may result in loss of funds
- Currency conversion may result in additional losses