The following statement does not disclose all risk associated investments, and is meant to inform users that trading foreign exchange, also known as Forex or FX, may result in substantial loss of funds and/or complete loss of funds in excess of your initial margin funds, and therefore should only be undertaken with risk capital. Risk Capital is defined as funds that are not necessary to the survival or well-being of the user.
If you do not thoroughly understand the risks involved in foreign exchange trading – do not trade. Ontega strongly recommends that any user considering trading foreign exchange currency or commodities, should first thoroughly read this risk disclaimer and understand risks and losses inherent to Forex trading.
It is your responsibility to carefully consider your investments prior to committing funds for foreign exchange trading. Before you consider undertaking any transactions with Ontega, you should carefully consider whether such trading is suitable in light of your own financial position and investment objectives. Foreign exchange trading is commonly known as a double-edge sword as the risks or losses involved are equivalent to the potential to gain.
Placing contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended amounts. Market conditions may make it impossible to execute such orders. You may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, your position may be liquidated. You will remain liable for any resulting deficit in your account. You should therefore carefully consider whether such trading is suitable in light of your own financial position and investment objectives.
Certain market conditions may make it difficult or impossible to execute orders at a stipulated price.
A spread position may be as risky as a simple long (or short) position and can be more complex.
The high degree of leverage that is obtainable in Spot Foreign Exchange Trading because of the small margin requirements can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
The insolvency of Ontega or of a Bank or Broker used by Ontega to effect transactions on your behalf may lead to your positions being closed out against your wishes.
The Client is hereby advised that the transactions undertaken through the dealing services of Ontega may be of a speculative nature. They may give rise to large losses within a relatively short period of time, which cannot be forecast and which may sustain a total loss of the funds deposited with Ontega. These losses may be attributed to adverse market movements, to position build-up or to the accumulation of commission and charges relating to the transactions.
The Client’s attention is expressly drawn to the fact that the nature of the transactions executed on his instruction, by Ontega may be non-readily realizable in the case of a currency traded so irregularly or infrequently that it cannot be certain that a price will be quoted at all times or that it may be difficult to effect transactions at a price which may be quoted owing to an absence of a counter party.
The foreign currency trading that you are entering into is not conducted on an exchange. Ontega may act as counterparty in these transactions and, therefore, may act as the buyer when you sell and the seller when you buy. As a result, Ontega interests may be in conflict with yours, unless otherwise specified in your written agreement or other written documents. Ontega establishes the prices at which it offers to trade with you; the prices Ontega offers might not be the best prices available and Ontega may offer different prices to different Clients. Additionally, since Ontega may act as the buyer or seller in the transaction, you should carefully evaluate any trade recommendations you receive from Ontega or any of its sicitors.
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