Trading CFDs, Cryptocurrencies and Forex may expose you to significant losses.
Notice Risk Warning:
Contracts for Difference (‘CFDs’) are complex financial products, which have no set maturity date. Therefore, a CFD position matures on the date a Client chooses to close an existing open position. Foreign Exchange (FX) and CFDs , which are leveraged products, incur a high level of risk and as a result significant losses may occur. Foreign Exchanges (FX) and CFDs may. As a result, Foreign Exchange (FX) and CFDs may not be suitable for all individuals. The Client should not risk more than he/ she is prepared to lose. Before deciding to trade, the Client shall ensure that he/ she understands the risks involved and take into account his/ her level of experience. The Client may seek independent advice, if necessary.
Risk Disclosure Notice:
The Risk Disclosure Notice (‘the Notice’) is provided on the basis that the client is proposed to trade with Brokers Park in Foreign Exchange (FX) and contracts for difference (‘CFDs’) which are leveraged products, incur a high level of risk and can result in significant losses.
It should be noted that the Notice does not contain all the risks and aspects involved in trading Foreign Exchange (FX) and CFDs; therefore, the Client needs to ensure that his/her decision is made on an informed basis taking into consideration the following;
Foreign Exchange (FX) pricing and CFDs fluctuate in value during the day; the price movements of Foreign Exchange (FX) and CFDs are determined by a number of factors including but not limited to speculation and availability of market information.
Main Risks Associated With Transactions in CFDs:
Foreign Exchange (FX) and CFDs are complex products that are not suitable for all types of investors, therefore you should always make sure that you understand how the product you are buying works, that it does what you want it to do and that you are in a position to take the loss if it fails.
Prior to trading Foreign Exchange (FX) and CFDs, you need to ensure that you understand the risks involved. Foreign Exchange (FX) and CFDs are leveraged products; therefore, they carry a higher level of risk to the Client’s capital compared to other financial products. Leveraged trading means that potential profits are magnified; it also means losses are magnified. The lower the margin requirement, the higher the risk of potential losses if the market moves against the Client. The value of Foreign Exchange (FX)and CFDs may increase or decrease depending on market conditions.
Due to the fact that Foreign Exchange (FX) and CFDs are leveraged products, engaging in Foreign Exchange (FX) and CFD trading may not be suitable for you and independent advice should be sought if necessary. The potential for profit must be balanced alongside prudent risk management given the significant losses that may be generated over a very short period of time when trading Foreign Exchange (FX) and CFDs.
You should not commence trading in Foreign Exchange (FX) and CFDs unless you understand the risks involved. You should consider trading in Foreign Exchange (FX) and CFDs if you wish to speculate, especially on a very short term basis, or you are wishing to hedge an exposure in your existing portfolio, and if you have extensive experience in trading, in particular during volatile markets, and can afford any losses.
Prior to trading Foreign Exchange (FX) and CFDs, you need to ensure that you understand Foreign Exchange (FX) and CFDs are not suitable for ‘buy and hold’ trading. Foreign Exchange (FX) and CFDs can require constant monitoring over a short period of time (minutes/hours/days). Even maintaining an investment overnight exposes you to greater risk and additional cost. The volatility of the stock market and other financial markets, together with the extra leverage on your investment, can result in rapid changes to the Client’s overall investment position. Immediate action may be required for you to manage your exposure, or to post additional margin.You should only trade Foreign Exchange (FX) and CFDs if you have enough time to monitor their investments on a regular basis.
Trading and investing in leverage products such as Foreign Exchange (FX) and CFDs carries a high degree of risk to your capital and as a result, significant losses may occur.
Investments such as these are not appropriate for all investors and you should ensure you understand all risks and seek independent advice prior to entering into such transactions. Brokers Park is under no obligation to assess the suitability of these products in relation to your particular circumstances.
The margin the Client needs to maintain as a deposit with Brokers Park is recalculated real time in accordance with changes in the value of the underlying assets of the Foreign Exchange (FX) and CFDs the Client holds. If this recalculation produces a reduction in value compared with the valuation on the previous day, the Client will be required to pay Brokers Park immediately in order to restore the margin position and to cover loss. If the Client cannot make the payment, Brokers Park will close the client’s position whether or not they agree to this action. Clients will have to meet the loss, even if the prices of the underlying asset subsequently recover.
When trading Foreign Exchange (FX) and CFDs, the Client is effectively entering into an over-the-counter (‘OTC’) transaction; this implies that any position opened with Brokers Park cannot be closed with any other entity. OTC transactions may involve greater risk compared to transactions occurring on regulated markets, for example traditional exchanges; this is due to the fact that in OTC transactions there is no central counterparty and either party to the transaction bears certain credit risk (or risk of default).
Foreign Exchange (FX) and CFD s trading, unlike traditional trading, enables the Client to trade the markets by paying only a fraction of the total trade value. However, it should be noted that leverage means that a small market movement may lead to a proportionately much larger movement in the value of the client’s position. Brokers Park offers flexible leverage starting from 1:1 .
It should be noted that Brokers Park shall monitor the leverage applied to Client’s positions, at all times; Brokers Park reserves the right to decrease the leverage depending on the Client’s trade volume.
The trading platform allows Clients to place a ‘stop loss’ order to each individual transaction which is aimed at closing a position should losses exceed the stop loss limit. The closing out of the position at the limit price is not guaranteed and may be greater. This may occur when the underlying market in the Foreign Exchange (FX) and CFDs has become unusually volatile and the market moves past the price of the Client’s stop loss order.
Depending on the trades Clients enter into, and how long he/she holds them for, Brokers Park may require the client to pay commission and/or holding costs. Commission will be incurred on entering certain trades and will be determined by reference to the size of the trade. In some cases, and particularly where the client keep trades open for a long time, holdings costs will apply. The aggregate of these holding costs may exceed the amount of any profits or increase the client’s loss.
Execution & Technical Risks:
Circumstances may occur which will affect the Clients ability to trade. Brokers Park’ ability to generate prices and execute orders is dependent on the availability of prices and liquidity in the exchanges, markets and other venues from which Brokers Park gathers market data. In addition, because Brokers Park maintains its own financial stability by hedging with other counterparties, Brokers Park may be unable to execute client orders where it cannot enter into a corresponding trade to hedge its own risk. Market circumstances may impact on the Client’s ability to place an order or close a trade with Brokers Park. Financial markets may fluctuate rapidly which affects the prices on the platform. Movements in Brokers Park prices will have a direct real time effect on Client trades and accounts. There is also a technical risk that, for example, system errors and outages, maintenance periods and internet connectivity issues prevent you from accessing the platform and being able to execute orders.
Circumstances may occur which the market volatility will increase or be unstable. In order for Brokers Park to maintain its own and its clients financial stability, Brokers Park may be unable to perform client cashouts temporarily with the exception of not exceeding 30 business days.