Risk Warning
Learn to Mpg Forex.’s policy is to give the following risk warning notice to all of its clients before they deal in margined products. While many of the hazards related to margined products are explained in this document, not all of the concerns are covered.
You shouldn’t trade in margined products unless you fully grasp their nature and the degree of your exposure to risk, as they carry a significant level of risk. Additionally, you should be confident that the product is appropriate for you given your situation and financial situation and that you are only speculating with money you can afford to lose.
The majority of margined products only accept cash payments. The risks associated with margined product investments are identical to those associated with futures and options. You should be aware of the consequences of the contingent obligation that may accompany transactions with margined products, as they are outlined below.
Given the uncertainty surrounding the performance of the underlying markets and funds, past performance should not be interpreted as a promise of future results.
Margined products do not require you to pay the entire purchase price at once; instead, you must make a series of payments against the purchase price. If you trade margined products, you run the risk of losing all of the margin you put down to open or keep a position. Should the market keep moving against you, you might be required to make large extra margin payments quickly—in certain situations, within minutes—in order to keep the position. Should you neglect to fulfill this obligation within the stipulated timeframe, your job can be terminated at a loss, and the ensuing shortfall will be your responsibility. Your margin rates and/or notional trading requirements may be raised abruptly in specific situations.
Deals in margined items are non-transferable off-exchange, or over-the-counter, or OTC, transactions. This implies that you will deal directly with Capital Index (UK) Limited, also referred to as “the broker,” and that the broker is the sole party with whom you can close trades. Your open positions cannot be sold or transferred to other brokers or margined goods suppliers.
You should find out the specifics of the commissions and other costs that you will be responsible for before you start trading. You should get a detailed written explanation with relevant examples if any charges are not stated in monetary terms (such as as a percentage of contract value). This will help you determine what the charges are likely to signify in monetary terms. For instance,
The broker does not offer guaranteed stop loss orders. Although orders are generally filled at the level of your order, if there is any gapping or slippage you may receive a fill worse than your stop level.
Gapping or slippage can occur when the underlying market is unusually volatile, and the market price moves rapidly past your stop loss price. In those circumstances you will receive the next available price. For example, if you had a long position in the FTSE Index at say 6680 with a good until cancelled stop loss order in place at 6660, and over the weekend there was an extremely negative announcement that caused the market price to open at 6655, you would receive a fill at (your sale price of) 6655 and not 6660.
You are in charge of your own tax matters; TAs does not offer tax advise to our clients.
You can execute transactions and have electronic communication with our broker using the trading platform. Although electronic communication is typically a dependable method of communication, there is never a guarantee that it will be. On rare occasions, delays and failures in electronic communications might occur. Should there be an issue with our platform, please contact our trading desk by phone. However, please be aware that there may be a wait during these hours.
The broker will deposit the money from Retail Clients into a bank account designated for client money that is kept apart from the broker’s funds; nonetheless, this might not offer total security in the event that the broker becomes insolvent.