This brief statement does not disclose all risks and other important aspects of forex products. Given the risks involved, customers should be aware of the nature of the transaction and the level of risk it will face before participating in the transaction. Forex product trading is not suitable for the general public. The client must carefully consider whether the transaction is suitable based on the client's investment experience, purpose, financial resources and risk tolerance. Customers should consult legal and other professional advice before opening an account and starting a transaction.
1. Risk of margin trading
Forex product trading is accompanied by high risks. Relative to the price of forex products, the initial margin amount may be smaller, so that the transaction will be leveraged. Even small changes in the market can have a relatively large impact on the funds that customers have or will deposit: it may be beneficial to the customer and may be disadvantageous. Customers may need to bear the initial deposit and any additional funds that the customer deposits into the company in order to keep the position unresolved. If the market changes are unfavorable to the customer or result in a decline in the margin level, the customer may not be able to maintain the position in time to maintain the position and be liquidated in the event of a loss, the customer will be responsible for the resulting losses.
2. Instructions or strategies to reduce risk
Orders that are intended to limit losses/profit to a specific amount (such as a “stop loss” order, or a “stop profit” order) may not be implemented. If the order is a limit order, there is no way to guarantee that the order will be executed at the limit price or will be executed. Some strategies for combining physical positions, such as spreads or the same price, may have the same risks as simply “long positions” or “short positions”.
Additional risk of other transactions
3. Trading facilities
Most electronic trading facilities use a computer-based system for the delivery, execution, matching, registration, and transaction clearing of trading orders. Like all facilities and systems, they are susceptible to temporary failures. The ability of a customer to recover certain losses may be limited to: limited liability set by the system provider, market, clearing house, and/or company. These limited responsibilities may vary.
4. Electronic trading
Different from the operation of open outcry trading, electronic trading will give customers the opportunity to encounter problems caused by computer hardware, software and Internet transmission errors, resulting in the customer's instructions being unexecuted or not executed at all. It is important to understand the risks and not to pass on third-party risks to BG.
5. Over-the-counter trading
In some jurisdictions, and only if limited, companies may be allowed to conduct off-exchange transactions. These transactions may increase the client's investment risk because the company may be the client's counterparty. Over-the-counter trading is generally less regulated or regulated by an independent regulatory body. Therefore, when making a transaction, the client must have a detailed understanding of the trading rules and the risks that may arise.
6. Transactions in other jurisdictions
Transactions in other jurisdictional markets, including those that are formally connected to the local market, may expose customers to other risks. Under the rules of those markets, investors may be protected differently or even reduce the protection of investors. Customers should ask for any rules related to customer transactions before the market opens. The client’s local regulatory authority will not be able to enforce the regulations of the regulatory authorities or markets in other jurisdictions where the client’s transactions are located. Clients should determine and understand the compensation available to their location and other jurisdictions prior to the transaction.
7. Commissions and other fees
Before the customer starts trading, the client should be aware of all commissions, fees and other fees payable. These charges will affect the customer's net profit (if any) or increase the customer's loss.
8. Suspend or limit the relationship between transactions and pricing
Market conditions (such as liquidity) and/or operating regulations in certain markets (such as suspension of trading of any forex products due to price restrictions or suspensions) may increase the risk of loss, as the completion of the transaction or the liquidation and hedging position. It becomes very difficult or impossible. Moreover, the normal price relationship between related assets and forex products may no longer exist, and the reference price of related assets is lacking, making "fair" prices difficult to judge.
9. Stored cash and belongings
Clients must be familiar with the various safeguards relating to “money and property deposited for local or foreign transactions, especially when the company is insolvent or bankrupt. The extent to which customers can recover cash and property is subject to specific legislation or local rules. In some jurisdictions, when the debt is cleared, the property that is specifically marked as a customer will be distributed proportionally with the cash.
10. Risk of force majeure
Notice to customer: If the trading activity is disrupted by force majeure, the customer's order may not be executed under conditions that are less than normal. Force majeure situations include but are not limited to the following:
1. The source of the quotation is temporarily closed, damaged or closed by other people and circumstances;
2. In the corresponding trading market, the price of forex products has abnormally changed or lost liquidity;
3. The publication of macroeconomic data reports, or other political and economic information, has a significant impact on the price of forex products;
4. BG does not assume any responsibility for the failure of the electronic trading system to function properly due to hardware and software damage;
5. The Internet connection failed due to a mistake of the network provider;
6. Decisions and orders of the national administration;
7. The paradox of telecommunications systems.