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Trading foreign currencies is a challenging and potentially profitable
opportunity for educated and experienced investors. However, before
deciding to participate in the Forex market, you should carefully
consider your investment objectives, level of experience and risk
appetite. Most importantly, do not invest money you cannot afford
to lose.
There is considerable exposure to risk in any foreign exchange
transaction. Any transaction involving currencies involves risks
including, but not limited to, the potential for changing political
and/or economic conditions that may substantially affect the price
or liquidity of a currency.
More over, the leveraged nature of FX trading means that any
market movement will have an equally proportional effect on your
deposited funds. This may work against you as well as for you.
The possibility exists that you could sustain a total loss of
initial margin funds and be required to deposit additional funds
to maintain your position. If you fail to meet any margin call
within the time prescribed, your position will be liquidated and
you will be responsible for any resulting losses. Investors may
lower their exposure to risk by employing risk-reducing strategies
such as 'stop-loss' or 'limit' orders.
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