Forex Trading Guide for Beginners

 


High Risk Investment Disclaimer

Foreign exchange currency trading is one of the riskiest forms of investment available in the financial markets and only suitable for experienced individuals. 

Leveraged accounts with brokers permit you to trade foreign currencies on a highly  leveraged basis (up to approximately 100 times your account equity). In a standard account, an initial deposit of $1,000  will enable the account holder to take a maximum position of $100,000 market value.

You should avoid trading at maximum leverage as your funds can be completely lost if the position(s) held in the account has a one percent swing in value. Theoretically, an account could lose more than the equity it contains, if the account is trading at maximum leverage and positions held in the account swing more than one percent in value.  Given the possibility of losing one's entire investment, speculation in the off-exchange retail foreign currency market should only be conducted with capital funds that if lost, will not significantly affect one's financial well being.

The leveraged nature of ForeX trading means that any market movement will have an equally proportional affect on your deposited funds. The possibility exists that you could sustain a total loss of initial margin funds and may be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed with any broker, your position will be liquidated and you will be responsible for any resulting losses.

CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity.  Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. 

Information provided on this web site is intended solely for informational purposes, is obtained from sources believed to be reliable, and is not intended to provide financial advice.  Any statements about profits or income, expressed or implied, does not represent a guarantee.  Your actual trading may result in losses as no trading system is guaranteed. 

You accept full responsibilities for your actions, trades, profit or loss, and in no event shall the web site owner have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided by this web site, including any inaccuracies, errors in, or omissions of information.