Risk Disclosure

Risk disclosure

Fx merchants limited is an investment firm licensed and registered under the companies house UK(11554531)
The aim of this notice is to explain in general terms the nature of the risk involved when dealing with financial instruments and to help you make investments and take investment decisions on an informed basics.this notice should be read along with the terms and conditions.
In this respect clients should consider carefully before trading in financial instruments, as this is suitable for clients who understand and are willing to assume the financial,legal and other risks involved as well as those who are financially able to to assume any losses.clients are advised to seek independent investment advice if necessary before clients begin to trade,they should obtain details of all commission and any charges for which they will be liable.

 

Risks associated with transactions

It is emphasized that for many members of the public’s dealings in the financial instruments, including but not limited to contracts for difference(CFD) will not be suitable. The clients should not engage in any dealings directly or indirectly in financial instruments unless he/she knows and understands the features of the risks involved in them
1,the client should unreservedly acknowledge and accept that,regardless of any information which may be offered by the company, the value of the CFDs may flutists downwards or upwards a
2, clients should unreservedly acknowledge and accept that he/ she runs a risk of incurring losses and damages as a result of the dealing in contracts for difference and accepts and declares that he is willing to undertake this risk
3,the client should not engage in any dealings directly or indirectly in CFDs unless he knows and understand the future risks involved in them
4,The client should take the risk that his trades in contracts for difference maybe or become the subject to tax and or any other duty for example because of changes in legislation or his personal circumstances. The company does not warrant that no tax and or any other stamp duty will be payable. The client should be responsible for any taxes and or any other duty which may accrue in respect of his trades .
5,Contracts for differences(CFDs) are derivatives securities,where their price is derived from the price of the underlying reference instruments in which the CFDS refer to. Derivative securities/markets can be highly volatile.the prices of CFDs and the underlying reference instruments and indices may fluctuate rapidly and over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the client or company
6,Cleints are required to deposit a minimum of collateral in order to open a position. The collateral will depends on the underlying instrument of the CFD, level of leverage chosen and the value of position to be established. The company may not notify the client for any additional requirements regarding the collateral needed to sustain a loss making position. The company has the discretionary right to start closing positions when collateral cannot maintain the client’s position. The company guarantees that there will be no negative balance in the account when trading CFDs