eFOREX
Market Opinion
Trading foreign currencies
is a challenging and potentially profitable opportunity for educated
and experienced investors. However, before deciding to participate in
the Forex Market, you should carefully consider your investment
objectives, level of experience and risk appetite.
Most importantly, do not
invest money you cannot afford to lose.
There is considerable
exposure to risk in any foreign exchange transaction. Any transaction
involving currencies involves risks including, but not limited to, the
potential for changing political and/or economic conditions that may
substantially affect the price or liquidity of a currency.
Moreover, the leveraged
nature of FX trading means that any market movement will have an
equally proportional effect on your deposited funds. This may work
against you as well as for you. The possibility exists that you could
sustain a total loss of initial margin funds and be required to deposit
additional funds to maintain your position. If you fail to meet any
margin call within the time prescribed, your position will be
liquidated and you will be responsible for any resulting losses.
Investors may lower their exposure to risk by employing risk-reducing
strategies such as 'stop-loss' or 'limit' orders.
There are also risks
associated with utilizing an internet-based deal execution software
application including, but not limited, to the failure of hardware and
software. However, our trading system provider employs back up systems
and contingency plans to minimize the possibility of system failure,
and phone trading is always available.
Trading foreign exchange
on margin carries a high level of risk, and may not be suitable for all
investors. The high degree of leverage can work against you as well as
for you. Before deciding to invest in foreign exchange 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. You should be aware of all
the risks associated with foreign exchange trading, and seek advice
from an independent financial advisor if you have any doubts.
Due to the high degree of
leverage in Forex trading, any market movement can have a
disproportional and amplified effect on your deposited funds. This may
work against you as well as for you. The possibility exists that you
could sustain a loss of some or all of your initial margin funds. If
you sustain a total loss of your initial margin funds and receive a
margin call, as a standard industry practice all your open positions
will automatically be closed in an effort to prevent any further
losses. It is your responsibility to be aware of the margin
requirements for your trades, and to keep your account fully margined
at all times. Be advised that margins are subject to change without
further notice.
Investments in foreign
exchange speculation may be susceptible to sharp rises and falls as the
relevant market values fluctuate, not only may investors get back less
than they invested, but in the case of higher risk strategies,
investors may lose the entirety of their investment. It is for this
reason that when speculating in such markets it is advisable to use
only risk capital. The results above represent hypothetical trading
results for the period indicated in the table above using approved
systems developed exclusively by eFOREX. Simulated results do not
represent actual trading. No representation is being made that any
account will or is likely to achieve profits of losses similar to those
shown. Past performance is not indicative of future results. Individual
results vary and no representation is made that clients will or are
likely to achieve profits or incur losses comparable to those shown.
Benefits and Risks of
Leverage
Even though the Forex
Market offers traders the ability to use a high degree of leverage,
trading with high leverage may increase the losses suffered. Please use
caution when using leverage in trading or investing.
Testimonials
No testimonial used on
this website is indicative of future results. Past results are not
indicative of future results. The individuals quoted in the
testimonials used were not paid to be quoted. The testimonials used on
this website are unsolicited and are non-representative of all clients;
certain accounts may have worse performance than that indicated.
High Risk Investment
Trading foreign exchange
on margin carries a high level of risk, and may not be suitable for all
investors. Before deciding to trade foreign exchange 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. You should be aware of all
the risks associated with foreign exchange trading, and seek advice
from an independent financial advisor if you have any doubts.
eFOREX Market Opinions
Any opinions, news,
research, analyses, prices, or other information contained on this
website is provided as general market commentary, and does not
constitute investment advice. eFOREX, Inc. "eFOREX" will not accept
liability for any loss or damage, including without limitation to, any
loss of profit, which may arise directly or indirectly from use of or
reliance on such information.
Accuracy of Information
The content on this
website is subject to change at any time without notice, and is
provided for the sole purpose of assisting traders to make independent
investment decisions. eFOREX has taken reasonable measures to ensure
the accuracy of the information on the website, however, does not
guarantee its accuracy, and will not accept liability for any loss or
damage which may arise directly or indirectly from the content or your
inability to access the website, for any delay in or failure of the
transmission or the receipt of any instruction or notifications sent
through this website.
Distribution
This site is not intended
for distribution, or use by, any person in any country where such
distribution or use would be contrary to local law or regulation. None
of the services or investments referred to in this website are
available to persons residing in any country where the provision of
such services or investments would be contrary to local law or
regulation. It is the responsibility of visitors to this website to
ascertain the terms of and comply with any local law or regulation to
which they are subject.
Fast-Moving Market Risk Disclosure
The spot Foreign Exchange
market is subject to extreme price volatility. Fast market conditions
may be caused by various factors, including but not limited to news
releases and/or order imbalances. During extreme price volatility in
fast markets, currency pair prices may gap and spreads may widen. A
price gap occurs when the price of a currency pair either jumps or
plummets from its last bid/offer quote to a new quote, without ever
trading at prices in between.
Prior to major economic
news releases, eFOREX may restrict the placing of entry orders to a
greater number of pips away from market price than the typical five
(5). The decision to widen this spread will be based on the prevailing
market liquidity and volatility. All data released will be evaluated
separately. This change does not prevent the placing of market orders;
however, market orders could be subject to a re-quote during fast
market conditions. Our actions are designed to reflect current
conditions and attempt to protect our Clients from the possibility of
extreme gap fills during periods of increased volatility.
The standard industry
practice for currency dealers, including dealers on the interbank
market, during fast market conditions and price gaps is to set market
levels and execute orders without the use of automated systems or
services. In such an event, there may be a significant delay in trade
execution while rates are cross-referenced. If the market trades
through a stop, the stop is reset at the next best tradable price. A
specified rate order does not provide a fixed-price guarantee to the
counterparty.
eFOREX, like all currency
dealers, is a "request for quote" dealer and follows industry standards
for fast market conditions. eFOREX Clients who elect to trade during
fast market conditions are responsible for losses incurred due to this
practice, just as Clients are held responsible during normal trading
conditions. eFOREX will not be held liable for any losses due to fast
or volatile markets, electronic disruption in service, service delays,
incorrect information received from service vendors (e.g. quotations,
news services) and/or Clients (e.g. client profile data, updated data).
