RISK DISCLOUSRE POLICY
The risk of leveraged foreign currencies trading, Contracts for Difference or gold/silver bullion over-the-counter (“OTC”) trading is high. Trading these products may cause you to lose the amount more than your initial margin funds. Placing contingent orders, such as “stop-loss” or “stop-limit” order, may not necessarily limit your loss as market conditions, especially when the market is volatile, may make it impossible to execute such stop loss orders. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called to pay substantial additional margin funds on short notice to maintain your position. If the required additional funds are not provided within the prescribed time, your position may be liquidated and you will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is appropriate for you in light of your own financial position, investment objectives and risk tolerance.
If client directs BYFX Global Co., Limited (“BYFX Global”) to enter into any transaction:
(a) any profit or loss arising as a result of a fluctuation in the exchange rate affecting such transactions will be entirely for client’s risk;
(b) all initial and subsequent deposits for margin purposes shall be made in denominated currency, in such amounts as BYFX Global may in its sole discretion require; and
(c) BYFX Global is authorized to convert any funds in client’s account into margin at a rate of exchange determined by BYFX Global in its sole discretion on the basis of the prevailing money market rates.
Clients may also experience gaps in market prices at the opening/closing of the market. Due to market volatility during these time periods, trading at the open or at the close may involve additional risk and must be taken into account in any trading decision.
The placing of certain orders (e.g. “stop-loss” orders, or “stop limit” orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as “spread” and “straddle” positions may be as risky as taking simple “long” or “short” positions.
The client understands that as the client trades on margin, price changes may result in significant losses that may substantially exceed the client’s investment and margin deposit.
The client warrants that the client are willing and able, financially and otherwise, to assume the risk of leveraged foreign exchange, Contracts for Difference or gold/silver bullion trading, and in consideration of BYFX Global’s carrying the client account(s), the client agrees not to hold BYFX Global responsible for losses incurred through following client’s trading instructions .
The client recognizes that guarantee of profit or freedom from loss are impossible of performance in leveraged foreign exchange trading, Contracts for Difference or gold/silver bullion trading.
The client acknowledges that the client has received no such guarantees from BYFX Global or from any of BYFX Global’s representatives or other entity with whom client is conducting client’s BYFX Global account and has not entered into this agreement in consideration of or in reliance upon any such guarantees or similar representations.