General Risk disclosure
GENERAL RISK DISCLOSURE
1.1. "FXFINPRO.com" is a domain owned and operated by "PFX Financial Professionals Limited", a Cyprus Investment Firm regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 193/13 (the “Company”).
1.2. The Company is operating under Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC, as the same may be in force from time to time and modified or amended from time to time (the “Markets in Financial Instruments Directive (2004/39/EC)” or “MiFID”), which was implemented in Cyprus by the Investment Services and Activities and Regulated Markets Law of 2007 (Law 144(I)/2007 of 26 October 2007) and Cyprus Law 106(I)/2009 of 23 October 2009, which provide for the provision of Investment Services, the exercise of Investment Activities, the operation of Regulated Markets and other related matters (the “Investment Services and Activities and Regulated Markets Law”), as the same may be modified and amended from time to time (collectively, the “Markets in Financial Instruments Legislation”).
1.3. This notice is provided to you in accordance with the above-mentioned “Markets in Financial Instruments Legislation”, because you are considering dealing with the Company in certain derivative financial instruments provided by the Company (“Financial Instruments”).
1.4. This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in Financial Instruments and is solely designed to explain in general terms the nature of the risks particular to dealing in the Financial Instruments provided by the Company and to help you to take investment decisions on an informed basis. This notice should be read together with the “Risk Disclosures for Financial Instruments & Investment Services”.
2. RISK WARNINGS
2.1. You should not engage in any investment directly or indirectly in Financial Instruments unless you know and understand the risks involved for each one of the Financial Instruments provided by the Company. Accordingly, prior to applying for an account you should consider carefully whether investing in a specific Financial Instrument is suitable for you in the light of your personal circumstances and financial resources.
2.2. You are hereby warned and informed of the following risks:
- The Company does not and cannot guarantee the initial capital of your portfolio or its value at any time, or any money invested in any Financial Instrument.
- You should acknowledge that, regardless of any information which may be offered by the Company, the value of any investment in Financial Instruments may fluctuate downwards or upwards and it is not unlikely that the investment may become of no value.
- You should acknowledge that you run a great risk of incurring losses and damages as a result of the purchase and/or sale of any Financial Instrument and you accept that you are willing to undertake this risk.
- Information regarding the previous performance of a Financial Instrument does not guarantee its current and/or future performance. The use of historical data does not constitute a binding or safe forecast as to the corresponding future performance of the Financial Instruments to which the said information refers.
- You are hereby advised that the transactions undertaken through the dealing services of the Company may be of a speculative nature. Large losses may occur in a short period of time, equalling the total of the funds you have on deposit with the Company.
- Some Financial Instruments may not become immediately liquid as a result of certain factors (such as, e.g., reduced demand), and you may not be in a position to sell them or easily obtain information on the value of these Financial Instruments or the extent of the associated risks.
- When a Financial Instrument is traded in a currency other than the currency of your country of residence, any changes in the exchange rates may have a negative effect on its value, price and performance.
- A Financial Instrument on foreign markets may entail risks that are different to the usual risks of the markets in your country of residence. In some cases, these risks may be greater. The prospect of profit or loss from transactions on foreign markets is also affected by exchange rate fluctuations.
- A derivative Financial Instrument (such as, e.g., an option, future, forward, swap, contract for difference) may be a non-delivery spot transaction giving an opportunity to make profit on changes in currency rates, commodity, stock market indices or share prices, which are called the “Underlying Instrument”.
- The value of the derivative Financial Instrument may be directly affected by the price of the security or any other Underlying Instrument, which is the object of the acquisition.
- You must not purchase a derivative Financial Instrument, unless you are willing to undertake the risks of losing entirely all the money which you have invested and also any additional commissions and other expenses incurred.
- Under certain market conditions, it may be difficult or impossible to execute an order.
- Placing “Stop-Loss Orders” may serve to limit your losses. However, under certain market conditions the execution of a “Stop-Loss Order” may be worse than its stipulated price and the realized losses can be larger than expected.
- Should the Equity in your account be insufficient to hold your current positions open, you may be called upon to deposit additional funds at short notice or reduce exposure. Failure to do so within the required time frame may result in the liquidation of your positions at a loss and you will be liable for any resulting deficit.
- The insolvency of the Company or of a Bank or Broker used by the Company to effect its transactions may lead to your positions being closed out against your wishes.
- Your attention is expressly drawn to currencies 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 the absence of a counter party.
- Trading on-line, no matter how convenient or efficient, does not necessarily reduce risks associated with trading in the Financial Instruments offered by the Company.
- There is a risk that your trades in Financial Instruments may be or become subject to tax and/or any other duty for example because of changes in legislation or his personal circumstances. The Company does not warrant that taxes and/or any other stamp duties will not be payable. You will be solely responsible for any taxes and/or any other duties which may accrue in respect of your trades.
- Before you begin to trade, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (but, for instance, as a “dealing spread”), you should ask for a written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms.
- Investing in some Financial Instruments entails the use of “gearing” or “leverage”. In considering whether to engage in this form of investment, you should be aware that the high degree of “gearing” or “leverage” is a particular feature of derivative Financial Instruments. This stems from the margining system applicable to such trades, which generally involves a comparatively modest deposit or “Margin” in terms of the overall contract value, so that a relatively small movement in the underlying market can have a disproportionately dramatic effect on your trade. If the underlying market movement is in your favour, you may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of your entire deposit, but may also expose you to a large additional loss.
- In regard to certain transactions in derivative Financial Instruments with the Company, a derivative Financial Instrument is a "non-delivery spot transaction" giving an opportunity to make profit on changes in currency rates, commodity, stock market indices or share prices, which are called the Underlying Instrument. You must not purchase derivative Financial Instrument unless you are willing to undertake the risks of losing entirely all the money which you have invested and also any additional commissions and other expenses incurred.
- Transactions may not be undertaken on a recognized or designated investment "exchange" and, accordingly, they may expose you to greater risks than transactions entered into on a recognized "exchange". The terms and conditions and trading rules may be established solely by the counterparty. You may only be able to close an open position of any given contract during the opening hours of the Company. You may also have to close any position with the same counterparty with whom it was originally entered into. In regard to transactions in Financial Instruments via the Company, the Company is using an Electronic Trading Platform for transactions in Financial Instruments. The Company’s Electronic trading Platform does not qualify as a recognized exchange, not as a Multilateral Trading Facility ("MTF").
- The Company will not provide you with investment advice relating to investments or possible transactions in investments or make investment recommendations of any kind.
- The Company may be required to hold your money in an account that is segregated from other clients and the Company’s money in accordance with current regulations, but this may not afford complete protection.
3.1. This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in all Financial Instrument and investment services.
3.2. Please refer to the “Risk Disclosure for Financial Instruments & Investment Services” if you are considering trading with the Company in derivative Financial Instruments.
3.3. The Company reserves the right to review and/or amend its Risk Disclosure statements, at its sole discretion, whenever it deems fit or appropriate.
3.4. Our Risk Disclosure statements are not part of our Terms and Conditions of Business and are not intended to be contractually binding or impose or seek to impose any obligations on us which we would not otherwise have, but for the Markets in Financial Instruments Legislation.
3.5. Should you have a question about the Risk Disclosures set forth herein please direct your questions to our Compliance Department: firstname.lastname@example.org.