High
Risk Investments
The foreign exchange market is one of most popular markets
for speculation, due to its enormous size, liquidity and tendency
for currencies to move in strong trends. Presumably, these
characteristics would enable traders to have tremendous success.
However, success has been limited mainly for the following
reasons.
FX
Engines 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. FX Engines Inc.
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.
Internet
Trading Risks
There are risks associated with utilizing an Internet-based
deal execution trading system including, but not limited to,
the failure of hardware, software, and Internet connection.
Since FX Engines does not control signal power, its reception
or routing via Internet, configuration of your equipment or
reliability of its connection, we cannot be responsible for
communication failures, distortions or delays when trading
via the Internet. FX Engines employs back up systems and contingency
plans to minimize the possibility of system failure, and trading
via telephone is always available.
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. FX Engines
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.
Market
Risks and Online Trading
The trading platform provides sophisticated order entry and
tracking of orders. All stop-loss, limit and entry orders
are guaranteed against slippage except in extraordinary volatile
market conditions. Trading on-line, no matter how convenient
or efficient does not necessarily reduce risks associated
with currency trading. All quotes and trades are subject to
the terms and conditions of the User Agreement accessible
through this website.
Investment
Protection
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.
Many
traders come with false expectations of the profit potential
and lack the discipline required for trading. Short term trading
is not an amateur's game and is usually not the path for quick
riches. Because currencies may seem exotic or less familiar
than traditional markets (i.e. equities, futures, etc.), it
does not mean that the rules of finance and simple logic are
suspended. One cannot hope to make extraordinary gains without
taking extraordinary risks. A trading strategy that involves
taking a high degree of risk means suffering inconsistent
trading performance and often suffering large losses. Trading
currencies is not easy (if it was, everyone would already
be a millionaire), and many traders with years of experience
still incur periodic losses. One must realize that trading
takes time to master and there are absolutely no short cuts
to this process.
The
most enticing aspect of trading currencies is the high degree
of leverage used. Leverage seems very attractive to those
who are expecting to turn small amounts of money into large
amounts in a short period of time. However, leverage is a
double-edged sword. Just because one lot ($100,000) of currency
only requires $1000 as a minimum margin deposit, it does not
mean that a trader with $10,000 in his account should easily
be able to trade 10 lots or even 5 lots. One lot is $100,000
and should be treated as a $100,000 investment and not the
$1000 put up as margin. Most traders analyze the charts correctly
and place sensible trades, yet they tend to over leverage
themselves (take a position that is too big for their portfolio),
and as a consequence, often end up forced to exit a position
at the wrong time.
If
an account value is $10,000 and the trader places a trade
for 1 lot, he is in effect, leveraging himself 10 to 1, which
is a very significant level of leverage. Most professional
money managers are not allowed to leverage even this high.
Trading in small increments on the account will allow the
trader to endure many losing trades without experiencing large
monetary losses. |