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Forex risk
disclosure:
Before deciding to participate in Forex trading, you should carefully
consider your investment objectives, level of experience and risk appetite.
There is a significant learning curve to trading successfully in Forex.
Most importantly, do not invest money you cannot afford to lose. Forex
investing is not ideally suited for investment of retirement (IRA) accounts.
There is considerable exposure to risk in any foreign exchange transaction.
The market remains open 24 hours a day for 5 ½ days. This means
that unexpected events may affect your investment while you are resting.
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, spread, or liquidity
of a currency.
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,
a high leverage refers to the speed at which an account gains or loses
money. One cannot hope to make extraordinary gains without taking extraordinary
risks. Leverage should be gradually increased, as trading performance
improves. There also additional risks that affect your Forex investments,
such as, but not limited to: losing internet connectivity for various
reasons (your machine, your ISP provider, IBFX servers, IBFX ISP provider),
computer or server malfunction, software
upgrade disruptions, and inappropriate usage of trading tools. As a result,
prudent investors should be prepared for unexpected contingencies by implementing
appropriate procedures such as having: multiple computers setup for trading,
multiple ISP providers, Interbank FXs phone number on speed dial
to assist with trades, and print outs of account
number and open tickets. In addition, investors should always gradually
upgrade their operations by starting with a demo testing period, followed
by setting up a mini account, and upgrading to a live account if all tests
are working to plan.
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