RISK OF LEVERAGED FOREIGN CURRENCIES TRADING, CONTRACT FOR DIFFERENCE(“CFD”) OR GOLD/ SILVER BULLION TRADING
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.
RISK OF COLLATERAL
The risk of loss in financing a transaction by deposit of collateral is significant. You may have losses in excess of your cash and any other assets deposited as collateral. You should therefore carefully consider whether such a financing arrangement fits you in light of your own financial position, investment objectives and risk tolerance.
RISK OF OTC TRANSACTIONS
All transactions conducted through BYFX Global Co., Limited (“BYFX Global”) are OCT transactions. Such transactions are neither traded on a regulated exchange nor cleared on a clearing house so that the rules and regulations relating to exchange or clearing house are not applicable to the transactions.
LEVERAGED FOREIGN CURRENCIES TRADING, CONTRACTS FOR DIFFERENCE OR GOLD/SILVER BULLION TRADING FLUCTUATION RISK
Leveraged Foreign Currencies Trading, Contracts for Difference or Gold/Silver Bullion Trading are speculative and volatile, and thus trading of the same is considered to be highly risky to the investors.
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.
Any Leveraged foreign exchange, Contracts for Difference or gold/silver bullion trading contracts that rely on price latency arbitrage for profits is strictly prohibited. The transaction(s) in issue may be revoked once BYFX Global discovers the breach. BYFX Global reserves the right to make any necessary corrections or adjustments on a client’s account accordingly without prior notice.
ADVERSE MAKERT CONDITIONS
Market conditions (e.g. liquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or “circuit breakers”) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.
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.
INTERNET TRADING RISK
There are risks associated with online trading system including, but not limited to, the failure or malfunction of hardware, software, and Internet connection. Since the internet connectivity is beyond BYFX Global’s control, BYFX Global will not be responsible for such communication failures, distortions or delays when trading through the online trading platform.
DEPOSIT MONEY AND OTHER PROPERTY
Clients should familiarize themselves with the protections given to the money or other property you deposit for the transactions, particularly in the event of the insolvency or bankruptcy of a firm. Clients should also be aware That the extent to which clients may recover their money or property may be governed by specific legislation or local rules.
COMMISSION AND OTHER CHARGES
Before clients begin to trade, clients should obtain a clear explanation of all commission, fees and other charges for which clients will be liable. These charges will affect a client’s net profit (if any) or increase a client’s loss.
ACCURACY OF INFORMATION
The content on BYFX Global website is provided for the sole purpose of assisting clients to make independent investment decisions. The content is subject to change at any time without notice. BYFX Global has taken reasonable measures to ensure the accuracy of the information on the Website. However, BYFX HK does not guarantee the accuracy of the content on its website and will not accept liability for any loss or damage that may arise directly or indirectly from the content or cleints’ 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.
The client acknowledges that any investments in leveraged and non-leveraged transactions are speculative, risky, and appropriate only for those who can assume risk of loss in excess of their margin deposit.
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.