RISK DISCLOSURE
Trading leveraged financial products involves a high level of risk and may not be suitable for all investors. Before opening an account or trading with SedoFx, you should carefully consider whether trading is appropriate for you and whether you understand the risks involved.
HIGH RISK WARNING
Trading foreign exchange, CFDs and other leveraged financial products can result in significant losses. Depending on the product, account structure and applicable terms, losses may occur rapidly. You should only trade with funds you can afford to lose and should ensure that you understand the products, their characteristics and the risks involved before trading.
1. General Trading Risks
Trading in financial markets carries inherent risks. The value of your investments can go down as well as up, and you may not get back the amount you invested. Past performance is not indicative of future results.
2. Leverage & Margin Risk
Leverage allows you to control a large position with a relatively small amount of capital. While this can magnify profits, it also significantly magnifies losses. A small market movement against your position can result in the loss of your entire margin deposit and, in some cases, you may be liable for losses exceeding your initial investment.
3. Forex & CFD Risks
Contracts for Difference (CFDs) and Foreign Exchange (Forex) are complex instruments and come with a high risk of losing money rapidly due to leverage. You do not own or have any rights to the underlying assets.
4. Market Volatility
Financial markets can be highly volatile. Prices can move rapidly in response to economic, political, or social events. This volatility can cause significant price gapping or slippage, which may adversely affect your trading positions.
5. Execution & Liquidity
Under certain market conditions, it may be difficult or impossible to execute your order at the requested price. Liquidity can dry up, leading to wider spreads and significant price fluctuations.
6. Technology & Connectivity
Trading on electronic systems entails risks associated with system failures, connectivity issues, and software bugs. We are not responsible for any losses arising from system malfunctions or connectivity problems.
7. Market-Specific Risks
Precious Metals & Commodities
Subject to physical supply and demand factors, geopolitical events, and currency fluctuations.
Indices
Influenced by the performance of underlying constituent companies and broader economic indicators.
Cryptocurrencies
Highly speculative, unregulated in many jurisdictions, and subject to extreme volatility and cybersecurity risks.
Forex
Impacted by central bank policies, interest rate differentials, and global economic data.
8. Client Responsibility
You are solely responsible for your trading decisions and monitoring your open positions. You should regularly review your account and ensure you have sufficient margin to maintain your trades.
9. No Investment Advice
SedoFx does not provide investment, tax, or legal advice. Any information, research, or analysis provided is for informational purposes only and should not be construed as a recommendation or offer to buy or sell any financial instrument.
10. Understand the Risks Before You Trade
Ensure you fully understand the mechanics of the products you wish to trade, the associated costs, and the potential risks before opening an account or executing any transactions.
RISK DISCLOSURE STATEMENT
This Risk Disclosure provides general information about the risks associated with trading leveraged financial products. It does not contain every possible risk or consideration associated with trading. Clients should carefully review all applicable SedoFx agreements, terms, conditions and disclosures before opening an account or trading.