In considering whether to trade in high risk foreign currencies where there exists a substantial amount of price volatility and financial leverage, you should read, understand, and seriously consider all of the following real risk factors which you are certain to encounter.

The object of this guide is to briefly explain in straightforward plain-language some of the many risks involved trading. It also attempts to describe some basic concepts of financial risk itself in a way that is not only understandable, but also useable in evaluating the risks of forex investments. For it is precisely and only the assumption of risk of loss that gives rise to the opportunity for profit in the first place.

Risk is fundamental to profit. The terms risk and profit are inseparable, opposite sides of the same coin. So the profit potential of any given financial opportunity can only be assessed in the context of its attendant risks.

In many important ways, an investor is not simply a consumer but a party to a legal contract. Both the offeror and purchaser of an investment have rights and responsibilities. This "Bill of Rights" is designed to assist you the investor in making an informed decision before committing your funds. It is not intended to be exhaustive in its descriptions. Should you desire further information about a particular type of investment, you are invited to contact the appropriate organization listed at the end of this brochure.

 

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volume rebate from the bid/ask spread
paid by the clearing firm.

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