Risk Disclosure
Foreign exchange trading is very speculative and involves a significant risk of loss. Foreign exchange trading is not suitable for many investors and only risk capital should be employed. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. An online foreign exchange trading account does not take into consideration your specific investment goals or financial situation and you should consult an independent financial advisor regarding your suitability prior to any trading.
This brief statement does not disclose all of the risks and other significant aspects of trading in foreign exchange. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in foreign exchange is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.
Although MF Global FX provides a sophisticated order entry and tracking system, trading online, no matter how convenient or efficient does not necessarily reduce risks associated with currency trading. The execution of all Market, Stop Loss, Limit and Entry orders are on a best-effort basis. All quotes and trades are subject to the terms and conditions of the MF Global FX Client Agreement accessible from this website. Please carefully review the relevant (Trading Station or MT4 or Avalon) Execution Risk Disclosure of the platform you select.
Margin Trading Risks
Transactions in foreign exchange are speculative and carry a high degree of risk. The amount of initial margin is small relative to the value of the foreign exchange contract so that transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited to maintain your position. Please carefully review the MF Global FX Margin Policy and Procedures.
Internet Trading Risks
To minimize system failure and trading disruptions, MF Global FX employs backup systems, contingency plans and trading support by phone to assist traders should the platform be temporarily inaccessible. However, the placing of Stop Loss or Stop Limit orders intended to limit losses to certain amounts may not be effective because market conditions or potential hardware, software and Internet connection failure may make it impossible to execute such orders. MF Global FX does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, and therefore we cannot be responsible for communication failures, distortions or delays when trading via the Internet.
Trading in Volatile Markets
Volatile market conditions affect liquidity, and therefore impact order execution. Market gaps may occur under these circumstances and although MF Global FX will strive to ensure that there is sufficient liquidity to fill orders, some liquidity providers may temporarily withdraw pricing from the market resulting in wider spreads, and delays in order execution and trade confirmation. Examples of events causing volatile market conditions include, but are not limited to, the release of economic reports, rate announcements, or any breaking news of a political or economic nature.
The execution of all Market, Stop Loss, Limit and Entry orders are on a best-effort basis. Currency trading, whether on a regulated futures exchange such as the Chicago Mercantile Exchange (CME) or in the over-the-counter market, carries high risks, which can be exacerbated during volatile markets after certain announcements.
In addition, where the new information released is substantially variant from market consensus, it will prompt liquidity providers to re-price risk and adjust rates accordingly, which ultimately will impact order execution. Although MF Global FX will always endeavor to fill a Market order at the quoted price, under these circumstances, it is possible that a trader may not receive a fill at the requested price.
Market Opinions
Any opinions expressed by MF Global FX about the future direction of currency prices are purely opinions, and are not guaranteed in any way. MF Global FX does not accept any liability for any damages, losses or lost profits suffered in connection with any decision made, action or inaction taken in reliance upon the information provided on this website or any third-party website linked to this website.
The terms and conditions of the Client Agreement are subject to change without notice. Please refer to the Risk Information Document for Derivatives and the MF Global FX Client Agreement accessible from this website for a more detailed description of risks.
