Marketfxm offers you the ability to trade contracts for difference CFDs. Trading our CFDs carries a high degree of risk. This warning provides you with information about key factors and risks you should take into account before trading with us. It is not a complete list of all the risks and does not explain how these apply to your individual circumstances. You should ensure you understand these risks before trading with us. If anything is unclear, please contact us. If you open an account with us, you must keep these risk factors in mind at all times and ensure you have sufficient financial resources to bear such risk when you trade with us. You should always monitor your positions carefully.
CFDs allow you to obtain an indirect exposure to an underlying asset such as a currency pair, index, commodity, metal or bond. This means you will never own the underlying asset, but you will make gains or suffer losses as a result of price movements in the underlying asset to which you have the indirect exposure. The purpose of CFDs is generally for you to speculate (i.e. take a chance) on price movements in the underlying asset. For this reason, CFDs are generally held for short periods of time. Trading CFDs carries a high degree of risk and will not be appropriate for everyone.
You may get back less than your Initial Investment
Every financial investment involves a degree of risk. The value of your investments may increase or decrease and you may get back less than your initial invested capital. With some of our CFDs, your losses may exceed your initial deposit.
The use of leverage magnifies your losses and gains
You generally trade CFDs using leverage. Trading using leverage allows you to trade without paying or depositing the full value of your position in advance. We take a form of security (or deposit) against any losses you may incur when you trade using leverage. This is known as Margin. Trading on leverage magnifies your gains and losses, so small price changes in the underlying asset can result in large losses or gains. We are required by law and regulation to impose leverage restrictions on opening Transactions.
The effects of trading on margin
For each Transaction we require you to have certain funds available on your account, this is known as “Margin”. Margin acts as a deposit against the full value of the Transaction. This is what creates the leverage referred to above. Margin protects us in case you are not able to pay any money you owe us when Transactions are closed out. Although maximum leverage rates and therefore minimum levels of Margin are set by law and regulation for retail clients, we are able to increase the amount of Margin required for any reason. We set the amount of Margin required for professional clients, and can alter it for any reason.
If the market moves against you, you may be required to pay substantial additional funds at short notice to maintain your Margin Requirement. If you fail to maintain your Margin Requirement, we will close your open positions without prior notification. You will be responsible for any losses you incur as a result, subject to negative balance protection for retail clients.
The nature of the contracts between you and us Every Transaction that you enter into using our services is a contract between you and us. We act as the seller when you buy, and the buyer when you sell. You cannot transfer your contracts to other providers. You must close all contracts through us.
Our CFDs are not traded on an exchange The contracts that you enter into with us are not executed on an exchange. You may not be afforded all of the regulatory and financial protections offered by exchange-traded investments.
We do not provide advice
We provide our services on an execution only basis. This means we do not provide investment or financial advice for any Product. Where we provide factual information, market commentary, Transaction procedure guidance or methods of managing risk, you should not construe these as advice. You are solely responsible for any decision to enter into a Transaction with us. You are responsible for managing your own tax, regulatory, and legal affairs, including where relevant any filings, payments, or returns. We do not provide any tax, legal, or regulatory advice. If you require assistance with a tax, legal or regulatory matters regarding our CFDs, you should seek independent professional advice.
Our CFDs are not appropriate for everyone Prior to opening an account, we are required to assess whether our CFDs are appropriate for you. We may refuse to open an account for you on the basis that we do not consider our services to be appropriate for you.
We would not expect our services to be appropriate for people who: (a) do not understand the impact of and risks associated with trading on margin and in derivative products; (b) do not have a high risk tolerance; (c) cannot afford to lose the money they are trading with; (d) want to invest for the long term;
We will warn you if we do not consider our service to be appropriate for you. In such circumstances we may still let you open an account, but you do so at your own risk like all our customers.