Risk Warning
Important information about trading risks
Last Updated: December 2024
HIGH RISK WARNING
Trading foreign exchange, CFDs, and other financial instruments on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.
1. General Risk Disclosure
Trading in financial markets involves substantial risk of loss and is not suitable for every investor. The valuation of financial instruments may fluctuate, and as a result, clients may lose more than their original investment. The impact of seasonal and market events may magnify these risks.
2. Leverage and Margin Risk
Trading with leverage means that you can control a large position with a relatively small amount of capital. While this can amplify your profits, it can also amplify your losses. You could lose more than your initial deposit. Key points:
- Leverage magnifies both gains and losses
- Margin requirements can change without notice
- You may be required to deposit additional funds at short notice
- Failure to meet margin calls may result in position liquidation
3. Market Risk
Financial markets are subject to various risks including:
- Volatility risk - rapid and significant price movements
- Liquidity risk - difficulty executing trades at desired prices
- Gap risk - prices may jump between trading sessions
- Currency risk - exchange rate fluctuations
- Interest rate risk - changes in interest rates affecting valuations
4. Technology Risk
Electronic trading systems are subject to:
- Hardware and software failures
- Internet connectivity issues
- Delays in order execution
- System overloads during high volatility
You should have contingency plans for technology failures.
5. Counterparty Risk
When you trade with us, you are exposed to our credit risk. Your funds are held in segregated accounts, but in the event of our insolvency, you may not recover all of your funds.
6. Regulatory Risk
Changes in regulations may affect your trading activities or the availability of certain products. We may be required to close positions or restrict trading in certain instruments due to regulatory changes.
7. No Guarantee of Profit
Past performance is not indicative of future results. There is no guarantee that:
- You will make any profits
- You will not incur losses
- Any trading strategy will be successful
- Expert advisors or automated systems will perform as expected
8. Suitability
Before trading, you should ensure that you:
- Understand the products you are trading
- Understand the risks involved
- Can afford to lose your entire investment
- Have adequate financial resources
- Have sufficient trading knowledge and experience
9. Independent Advice
We do not provide investment advice. If you are unsure about the suitability of trading, you should seek independent professional financial advice.
10. Restricted Jurisdictions
Our services are not available to residents of certain jurisdictions including but not limited to:
- United States of America
- Cuba
- Iraq
- Myanmar
- North Korea
- Sudan
- Syria
- Iran
IMPORTANT NOTICE
By opening an account with VS Global Connect, you acknowledge that you have read and understood this Risk Warning and accept all risks associated with trading financial instruments.